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How to confirm a market turnaround

QuestionsCategory: QuestionsHow to confirm a market turnaround
Ahmed Morsi asked 3 years ago
Patrick. Thank you. I've already learned so much in my first couple months as a VIP.  Currently I'm all in cash. Now with a failed Follow through day on the Nasdaq which occurred Dec 15th 2021- I'm not sure what to look for to give me confidence to get back in. We have not undercut the start of the rally so technically the FTD is still in effect. However, there aren't many good companies emerging from strong bases which decreases my confidence in a rally. Instead there are tons of potential 50day MA bounce set ups.  Question- 1.)Given the choppiness of the current major market index's HOW do you know when its safe to buy again i.e (wind at your back)? What key metrics are we looking for that will increase our chances that we wont get chopped up on the next clean and simple breakout? 2.)For example HTMMIS talks about a follow through day - but sometimes we are buying before that. WHAT do you look for in the market action to give you confidence that its time to start buying again? How do you know its not a fake out? PS. thank you very much for helping. 
1 Answers
Best Answer
Avatar photoOwen Staff answered 3 years ago

Hi Ahmed,
Pat made this video for you...
https://youtu.be/6nDPko1UjqQ

Ahmed Morsi replied 3 years ago

Thank you Pat & Owen – this really helped.
Much appreciated!