"HISTORY REPEATS ITSELF" is a very powerful mantra for success in STOCK MARKET. Anyone can mint money in a bull market but THE ONE who protects his/her money before a market crash is the one who makes profits in the long run... And the fun fact is that market gives enough chances to protect one's capital before the crash. Here I am with one of the very few patterns which was common in both the major crash of 2008 and 2020 and in a mini crash of 1999. This SETUP is very simple to read...yet a very powerful one
CONDITIONS TO QUALIFY IN THIS SETUP: 1.EMA 52 Slope should not be one directional upwards (CHECK IN BOTH DAILY AND WEEKLY TIME FRAME) 2.RSI-Sharp dip below 40 3.Triple Top as seen in the 1999/2008/2020 crash. 4.Breaking the bottom of the channel with gap down/low wick red candle.
Now This was one such SETUP which was common in 2 MAJOR and 1 MINOR crashes in the data which is available on charts. MARKETs can fell in many other bearish reversal setups like HEAD AND SHOULDERS as shown in the BEGINNING OF 2015 BEAR MARKET: https://www.tradingview.com/x/lQUQkiQ5/
Many more reversal setups are there which are visible in most of the mini/major crashes that takes place in the market...I will look forward to share one by one all the possible reversal patterns to avoid confusion in reading and digesting the SETUPs...FOLLOW me to stay updated as soon as I upload them on my channel. Till then, HAPPY TRADING :)
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