Thread by @scorpiomanojFRM

#Freetip
How to find market tops or bottoms ?
Tools used by stalwarts like Stan Weinstein, Mark Minnervini, William O Neil, etc.
No. of stocks above 30 week MA (MAMB)
Steps :
1) Watch for Price making HH, but MAMB makes lower low; suggests top is near. Might take several weeks

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In our N500 chart, it started from 16/07/2021 and made HH on 29/10/2021. (14 weeks)
2) Look for a bearish price action in weekly chart, like bearish engulfing, bearish pinbar, etc. This more or less confirms the top specifically. (29/10/21)
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3) To be more specific, watch out for the first lower high in weekly chart. This confirms the top. (18/11/21).
(4th week after step 2).
THIS IS WHEN MARK MINNERVINI GAVE A SELL CALL ON S&P WHEN THE WHOLE WORLD WAS BUYING .
5) Market tried to make a HH with ....

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4 continuous weeks of upmove wheras MAMB was making a massive LH. Suggesting price move not reliable.
Stalwarts use this before the event.
People like us use this only in hindsight. The more u study this in hindsight, the better u will spot tops and bottoms next time.
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Things to learn from this is:
Several weeks of patience is required; In this case from 18/11/21, it called for reducing investments. Almost 6 months of minimum action when the whole world was into buying frenzy.

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Do the reverse for bottom identification.
First sign of a bottom is MAMB moving above 30 week MA.
Then look for a lower low / MAMB making HL; this confirms bottom prompting for re-starting your investments by picking right stocks.
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For trollers, in hindsight anything can be told.
For learners particularly retailers like us, we can learn only from hindsight; history is the best teacher for us.
Pro Traders always look from big picture; retailers like us are always immersed with day to day price moves.