First, let's define the NASDAQ Composite Index:
The Nasdaq Composite Index is a large market-cap-weighted index of more than 2,500 stocks, American depositary receipts (ADRs), and real estate investment trusts (REITs), among others.
The index is calculated constantly throughout the trading day with the final value reported at 4:16 p.m. daily once prices have fully settled after the 4:00 p.m. ET market close.
The Index's composition is nearly 50% technology, with consumer services, health care, and financials the next most prominent industries.
What Is an Uptrend?
An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.
Some market participants only choose to trade during uptrends. These "long" trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows.
What Is V-Shaped Recovery?
V-shaped recovery is a type of economic recession and recovery that resembles a "V" shape in charting. Specifically, a V-shaped recovery represents the shape of a chart of economic measures economists create when examining recessions and recoveries. A V-shaped recovery involves a sharp rise back to a previous peak after a sharp decline in these metrics.
Complex corrections
Complex corrections are multiple ABC corrections that are joined by a three-wave price move identified as wave X.
Each of the waves in a complex correction adheres to the basic Elliott structures identified for corrections. That is, Zigzags, Flats, or Triangles.
A: Don't trade them on purpose. If you find yourself in one, find an appropriate exit point or be prepared to wait out the correction and return to the trend.
B: They provide no known predictive value, although we can predict you will be miserable if you are holding through one of them.
C: A complex correction will first become obvious when your expected movement into the next wave of a correction fails to breakout and instead pivots and reverses. You can then mark the 3 wave structure as Wave X and expect another one or two A, B, C corrections to follow.
A one-year Bullish channel:
What Is a Price Channel?
A price channel occurs when a security's price oscillates between two parallel lines, whether they be horizontal, ascending, or descending.
Price channels are quite useful in identifying breakouts, which is when a security's price breaches either the upper or lower channel trendline.
Traders can sell when price approaches the price channel's upper trendline and buy when it tests the lower trendline.
Fibonacci Fan approach:
A Fibonacci fan is a method of plotting support and resistance levels based on the ratios provided by the Fibonacci series.
Trendlines are drawn at intervals of 23.6, 38.2, 50, and 61.8 percent apart to predict retracements.
The Fibonacci ratio, also known as the "golden ratio," is roughly 1.618. This ratio is found throughout the natural and social sciences.
Half a Century:
A Decade:
Post Pandemic era:
What Is "Sell in May and Go Away"?
"Sell in May and go away" is a well-known financial-world adage. It is based on the historical underperformance of some stocks in the "summery" six-month period commencing in May and ending in October, compared to the "wintery" six-month period from November to April. If an investor follows this strategy, they would divest their equity holdings in May (or at least, the late spring) and invest again in November (or the mid-autumn).
Some investors find this strategy more rewarding than staying in the equity markets throughout the year. They subscribe to the belief that, as warm weather sets in, low volumes and the lack of market participants (presumably on vacations) can make for a somewhat riskier, or at a minimum lackluster, market period.
From 1950 to around 2013, the Dow Jones Industrial Average posted lower returns during the May to October period, compared with the November to April period.
Since 2013, statistics suggest this seasonal pattern may not be the case anymore, and those who follow it may miss out on significant stock market gains.
What about this summer???
I will not publish my answer to this question publicly..!
I did a comprehensive analysis of the NASDAQ Composite Index (IXIC) in the past 50 years.
I cancel recording a YouTube video on this analysis because data analysis of my previous videos shows my followers did not find them interesting.
I have 5450 followers on the TradingView platform, 987 on my free educational channel who use my analyses freely.
In the past 2 months, I recorded 7 videos, and 318 individuals subscribed to my YouTube Channel. These statistics convinced me not to waste time. I published the analysis in the usual article format, a more detailed version will be available for patrons and paid subscribers.
Moshkelgosha (SniperTrader)
References:
https://www.investopedia.com/terms/n/nasdaqcompositeindex.asp
https://www.investopedia.com/terms/u/uptrend.asp
https://www.investopedia.com/terms/f/fibonaccifan.asp
https://www.investopedia.com/terms/v/v-shaped-recovery.asp
http://www.bata4u.com/EW/combinations.html
https://www.investopedia.com/terms/p/price-channel.asp
https://www.investopedia.com/terms/s/sell-in-may-and-go-away.asp
The Nasdaq Composite Index is a large market-cap-weighted index of more than 2,500 stocks, American depositary receipts (ADRs), and real estate investment trusts (REITs), among others.
The index is calculated constantly throughout the trading day with the final value reported at 4:16 p.m. daily once prices have fully settled after the 4:00 p.m. ET market close.
The Index's composition is nearly 50% technology, with consumer services, health care, and financials the next most prominent industries.
What Is an Uptrend?
An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.
Some market participants only choose to trade during uptrends. These "long" trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows.
What Is V-Shaped Recovery?
V-shaped recovery is a type of economic recession and recovery that resembles a "V" shape in charting. Specifically, a V-shaped recovery represents the shape of a chart of economic measures economists create when examining recessions and recoveries. A V-shaped recovery involves a sharp rise back to a previous peak after a sharp decline in these metrics.
Complex corrections
Complex corrections are multiple ABC corrections that are joined by a three-wave price move identified as wave X.
Each of the waves in a complex correction adheres to the basic Elliott structures identified for corrections. That is, Zigzags, Flats, or Triangles.
A: Don't trade them on purpose. If you find yourself in one, find an appropriate exit point or be prepared to wait out the correction and return to the trend.
B: They provide no known predictive value, although we can predict you will be miserable if you are holding through one of them.
C: A complex correction will first become obvious when your expected movement into the next wave of a correction fails to breakout and instead pivots and reverses. You can then mark the 3 wave structure as Wave X and expect another one or two A, B, C corrections to follow.
A one-year Bullish channel:
What Is a Price Channel?
A price channel occurs when a security's price oscillates between two parallel lines, whether they be horizontal, ascending, or descending.
Price channels are quite useful in identifying breakouts, which is when a security's price breaches either the upper or lower channel trendline.
Traders can sell when price approaches the price channel's upper trendline and buy when it tests the lower trendline.
Fibonacci Fan approach:
A Fibonacci fan is a method of plotting support and resistance levels based on the ratios provided by the Fibonacci series.
Trendlines are drawn at intervals of 23.6, 38.2, 50, and 61.8 percent apart to predict retracements.
The Fibonacci ratio, also known as the "golden ratio," is roughly 1.618. This ratio is found throughout the natural and social sciences.
Half a Century:
A Decade:
Post Pandemic era:
What Is "Sell in May and Go Away"?
"Sell in May and go away" is a well-known financial-world adage. It is based on the historical underperformance of some stocks in the "summery" six-month period commencing in May and ending in October, compared to the "wintery" six-month period from November to April. If an investor follows this strategy, they would divest their equity holdings in May (or at least, the late spring) and invest again in November (or the mid-autumn).
Some investors find this strategy more rewarding than staying in the equity markets throughout the year. They subscribe to the belief that, as warm weather sets in, low volumes and the lack of market participants (presumably on vacations) can make for a somewhat riskier, or at a minimum lackluster, market period.
From 1950 to around 2013, the Dow Jones Industrial Average posted lower returns during the May to October period, compared with the November to April period.
Since 2013, statistics suggest this seasonal pattern may not be the case anymore, and those who follow it may miss out on significant stock market gains.
What about this summer???
I will not publish my answer to this question publicly..!
I did a comprehensive analysis of the NASDAQ Composite Index (IXIC) in the past 50 years.
I cancel recording a YouTube video on this analysis because data analysis of my previous videos shows my followers did not find them interesting.
I have 5450 followers on the TradingView platform, 987 on my free educational channel who use my analyses freely.
In the past 2 months, I recorded 7 videos, and 318 individuals subscribed to my YouTube Channel. These statistics convinced me not to waste time. I published the analysis in the usual article format, a more detailed version will be available for patrons and paid subscribers.
Moshkelgosha (SniperTrader)
References:
https://www.investopedia.com/terms/n/nasdaqcompositeindex.asp
https://www.investopedia.com/terms/u/uptrend.asp
https://www.investopedia.com/terms/f/fibonaccifan.asp
https://www.investopedia.com/terms/v/v-shaped-recovery.asp
http://www.bata4u.com/EW/combinations.html
https://www.investopedia.com/terms/p/price-channel.asp
https://www.investopedia.com/terms/s/sell-in-may-and-go-away.asp