October 23 (Mon): 【Harmonic】 Nikkei 225 VS Russell 2000 (Chit-chat: Analysts etc.? "It's up! It's down!" Meaningless!)
Good morning☀
When the rate starts to rise, say “It’s rising.”
When the rate starts to fall, say “It’s falling.”
That is the kind of forecast you’ll hear from news anchors and pundits on X (formerly Twitter)…
Do you understand how meaningless that is?
No one can predict market reversals.
So they can only say such things after the reversal has begun?
However, by applying Bollinger Bands, based on the “waveform progression,” you can predict what potential rate movements may occur in the future?
You can forecast.
I write about these methods and ways of thinking in “The Bollinger Band Disassembly” and in my newsletter.
Everyone, please also aim to be able to build scenarios.
If you become capable of building scenarios…
The likelihood of substantial losses becomes almost nil.
With Bollinger Bands, entry points are difficult, so I use harmonic patterns.
In Harmonics, entry and exit are clear.
And they are not bands whose waveforms change like Bollinger Bands.
Therefore you can set orders clearly and in advance.
By applying money management methods there, your win rate (note: I don’t like the term “win rate,” but for convenience) improves dramatically.
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 guess whether it will move up or down?♂️
“The market is not something to be predicted.”
This is something you must absolutely understand.
I am currently writing that in Part 3, “Trading Techniques.”
I’m still outlining it, so if you’re interested, please be patient.
Today I plan to look at a comparison with the ‘Russell2000.’
In a downtrend, the Russell 2000, known as the canary in the coal mine, often leads the decline.
When the market drops sharply, it frequently shows a declining waveform ahead of others.
It’s one of the stocks you’ll want to watch, for sure.
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