Video: How to Predict Market Turns

I know some traders use technical indicators (overbought/oversold, Divergence, etc), formulas (pivot points, Fibonacci, etc), even moon cycles to predict market turns…

But I use a more simplistic approach.

This is a very simple strategy that you can use to predict market turns.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Peter

    Raul, Very good and simple strategy. You did not mention about the direction. Should I consider the direction bias as well ? If weekly chart or monthly chart are showing downtrends, shouldn’t we go for short or waiting for short signal than going long on breakout to the upside? Thanks. Peter

  • Chimezie Charles Maduka

    I like the strategy Raul, but how do you manage risk and reward in the event the market breaks past the support level going further down, but your already in a trade headed up.

    • Raul Lopez

      Hello Chimezie, very interesting question…

      Most of the time, when the market gets close to an important LT level, it will for a range on the short term charts.

      We need to actually wait for the market to break that range on either way, then we start looking for trade opportunities.

      Wait for the market to make its first move, then we follow it! You dont need to get into a trade right at the bottom…

      Let me know if this helps!

      • Chimezie Charles Maduka

        Yes this helps alot,So in the example you gave we would wait for a breakout in either in the upward or downward direction and then look for an trade opportunity…

        • Raul Lopez

          You would need to look for the breakout of the short term range, then start looking for trade opportunities in the direction of the breakout.