I will explain why V shapped bottom regarding the indexes

Discussion in 'Technical Analysis' started by stock_trad3r, Mar 10, 2009.

  1. such as the SPX and the DJIA are possible

    1974 and 2002 are tow example of v shaped recoveries. The major indexes were able to recover form 50% losses in roughly the same duration as the losses occurred, hence forming a v bottom.

    So why are v bottoms possible? Why do indexes have such a strong propensity to recover their losses so quickly as seen today? The dow and Sp00z are up 5%.
  2. it won't happen. end of story. you need 100% return to recover the 50% losses. won't happen. not in 1 year. not in 2 years. not in 5 years. not in 10 years.
  3. With a 50% loss, generally a large bulk of the loss is recovered after a year or so. V shapped bottoms are possible, but not necessarly guaranteed. It comes down to probability and volume, interestingly.

  4. Are you mentally impaired?

    It took the S&P / DJIA

    Four and a Half years to recover from their 2002 low to their peak in late '07. What the hell are you talking about?

    You haven't even explained anything.

    (Are you the same person as Bond_Trad3R??)
  5. Bond_trad3r is an imitator.

    it took 4 years, but a bulk of the recovery was made in 2003 when the sp00z surged almost 40%.

    Do keep in mind that v shaped recoveries are possible, but not guaranteed.


    We begin by considering two function on the (x, y) plane. And a third function that is a function of the first two.

    Also, we'll re-scale these hypothetical functions such that they fit on a 1x1 plane.
  6. ROTFLMAO!!!!! oh my god!
  7. Stock,

    I was suspicious before, but now I am SURE.

    You're in your last year of high school, aren't you?

    Trigonometry, acne medications, after school work @ Pizza Hut?

    Am I close yet?

    Good luck with your trading - you are a nice person & it's always good to hear a contrarian voice.

    Just make sure you sell your stocks near 739 resistance on ES.

  8. Wow...now he's starting to talk like Hershey! Thanks stock, you made my day yet again!
  9. The first function is price for a hypothetical stock or index. The second function is volume.

    The third function relates price, volume, and a third variable, slope, to generate a so called energy level function. As a stock progrsses though time (x axis) and changes price (y axis), and volume an energy level can be computed.
  10. Holy shit you've really lost it now...
    #10     Mar 10, 2009