iCharts Discussions

[onelikeu]

hi forum,

i would like to share how i escaped 2008 crash.

THE BOX in the image is year 2008(monthly charts).

The logic seems silly but worked for me.If helpful would be nice

AIM
To find whether a Year is BULLISH OR BEARISH(CRASH)

CONDITION
PARAMETER USED Year open

I use YEAR OPEN as a lakshman rekha .

BULL
If markets stay above JANUARY first trading day open Till DEC 31 then i term it as a bullish year
Stay invested as long it remains above year open, exit if it comes below year open or sell on last trading day if year remains bullish

BEAR
If markets stay below jan first trading day open Till DEC 31 then i term it as a bearish year
Stay away as long as its below year open,put your money in as it closes above year open and exit on last day of the year(dec 31).

This is for medium term traders/investors. Can be used to short term traders when it is fragmented to months

In YEAR 2008
market year open was 6126.
market stayed above it for first 15 to 20 days then came below 6126 and end some where near 2960.
As per the laxman rekha line of year open 6126,one must have exited longs as it came below 6126 and felt pretty happy bcz of the aftermath till dec 31

So A crash escaped

TRAPS:

One can notice some green candles below 6126 as year remained negative.These are nothing but traps set by Bears.

As market stays negative for the year one doesnt need to get exited by those green candles(positive months).Thinking of reversal

This helped me to escape crash and traps..

The logic works good for bull markets too.

when market moves around year open there can be some volatility and loss.but it can be overcome by some indicators.

Eventhough a loss occurs in some volatile cases it helps one to save huge wealth......

tks

feedbacks and suggestions to trade better are welcomed plz