How to Spot a Bottom or Top?

[GoOptionsPro 10]

When one wants to swing trade, there are multiple ways to confirm or at least establish some confidence over your decision as to when to enter the market.

 

Can anyone give an example of where they are seeing this play out?

 

-Thank you

[tradelab03 10]

Most traders are inclined to place a stop right at the bottom of a double bottom or top of the double top. The conventional wisdom says that once the pattern is broken, the trader should get out. But conventional wisdom is often wrong.

 

Leaving the trade early may seem prudent and logical, but markets are rarely that straightforward. Many retail traders play double tops/bottoms, and, knowing this, dealers and institutional traders love to exploit the retail traders' behavior of exiting early, forcing the weak hands out of the trade before price changes direction. The net effect is a series of frustrating stops out of positions that often would have turned out to be successful trades.

[stefcio2002 10]

When one wants to swing trade, there are multiple ways to confirm or at least establish some confidence over your decision as to when to enter the market.

 

Can anyone give an example of where they are seeing this play out?

 

-Thank you

 

Look at EU now. Everybody is short on short time frames. But from a higher perspective we may actually have a turning point at current level , for we are sitting at a monthly fib level.

 

On H4 you see also (right part of chart, that 1,11 is a support)

 

Therefore, I will be bearish too, but should I got a long signal around 1,1 I will buy because of the monthly chart. And this is how I spot eventually turning points.

[pro4Xtrader 10]

I use cycles to stop the timing of entry, works pretty good if you do it right way

[timlisten 10]

I just use support and resistance combine with double tops and double bottoms to spot top and bottom.