October 23 (Mon): [Bollinger Bands] Nikkei 225 VS Russell 2000 (Chat: Analysts etc? "It's up! It's down!" Meaningless!)
Good morning ☀
When the rate starts to rise, it is “rising.”
When the rate starts to fall, it is “falling.”
That’s the kind of forecast you’ll see in news and from analysts, the so-called pundits on X (formerly Twitter)…
Do you understand how meaningless that is?
Market reversals are unpredictable for anyone.
So after the reversal begins, that’s all they can say?
However, by applying Bollinger Bands, according to the【waveform progression】, we can predict what kinds of rate movements might occur in the future?
You can forecast.
I write about that method and mindset in『Bollinger Band Explanatory Book』and in my newsletter.
Please also learn to construct scenarios.
If you become able to construct scenarios…
you will hardly ever suffer major losses.
With Bollinger Bands, entry points are difficult, so I use harmonics.
In harmonics, entry to exit is clear.
And it doesn’t involve bands whose waveform changes like Bollinger Bands.
Therefore you can set orders very clearly in advance.
By applying money-management techniques there, your win rate (I don’t like using the word “win rate,” but for convenience) dramatically increases.
As a result, I have had virtually no stop-outs in recent years.
The market can go up or down and you can still profit.
Never try to forecast whether it will go up or down?♂️
“The market is not something you can predict.”
This is something you absolutely must understand.
I am currently writing about this in Part 3, 『Trading Techniques』.
It is still in the outline stage, so if you’re interested please be patient a little longer?
Today I plan to look at a comparison with the ‘Russell 2000’.
The Russell 2000, known as the canary in the coal mine for bear markets, is ahead of the downturn.
When the market drops sharply, it often shows a waveform that declines ahead of others.
It’s one of the stocks you’ll definitely want to watch, isn’t it?
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