Holygrail trading
STOCKMARKET PREDICTIONS
INVERSIONS
It is in the nature of cycles that an anticipated high / low can appear earlier or later than predicted. Also, any predicted high/ low could invert (turn upside down) so that a high becomes a low and vice versa. This could affect the chart in one of two ways- (A) the whole chart could be inverted or-(B) a part of the chart could be inverted. (A) In this case,where the whole chart is inverted,all indicated highs become lows and all indicated lows become highs.So,lets say the prediction calls for the market to open down,find support and reverse at 10.30am.You would be looking to trade the reversal at 10.30 by buying at support.If the market opened up and found resistance around 10.30am, you would immediiately know that the chart has inverted and instead of buying ,you would be looking to go short at resistance.The most important part of the prediction is the indicated time* of the turn.The advantage you have in this example is that you already know what the rest of the chart should look like.If you can tie in the *time of the turn with a key technical level such as medium term support/resistance ,a pivot or a fibonacci ratio, then you can be even more confident the trade will go your way almost immediately. This approach also deals with the occasions where the high/low cycle appears earlier/later than indicated and where only a part of the chart has inverted . (B). In this case, instead of a reversal at 10.30am, the trend could continue for longer. So again using the technical levels together with the anticipated shape of the chart could give you a distinct advantage allowing you to better time your entries and hold your position for longer,gaining more profit.You usually find that when one cycle is late it tends to delay the next turn by a similar amount of time.Again, this can work to your advantage. I only use these predictions as one part of a system that includes fibonacci,pivots,support/resistance and a certain amount of discretion.If you are new to any of this dont forget you can follow my live trading signals and commentary free. Plus there is full analysis after the trading day. *A time zone rather than an exact time.
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