If you like Sushi you need to read this!
Betting against the market has increased significantly!
In the past 2-4 weeks the volume of the 4 inverse ETFs has increased significantly (+2x)!
This means lower prices are more likely!
What could happen in the next 3 weeks if prices pass the Red lines?
Market Reversals and the Sushi Roll Technique:
In his book "The Logical Trader," Mark Fisher discusses techniques for identifying potential market tops and bottoms.
Capturing trending movements in a stock or other type of asset can be lucrative. However, getting caught in a reversal is what most traders who pursue trendings stock fear. A reversal is anytime the trend direction of a stock or other type of asset changes. Being able to spot the potential of a reversal signals to a trader that they should consider exiting their trade when conditions no longer look favorable. Reversal signals can also be used to trigger new trades, since the reversal may cause a new trend to start.
One technique that Fisher discusses is called the "sushi roll." While it has nothing to do with food..!
The "sushi roll" is a technical pattern that can be used as an early warning system to identify potential changes in the market direction of a stock.
When the sushi roll pattern emerges in a downtrend, it alerts traders to a potential opportunity to buy a short position, or get out of a short position.
When the sushi roll pattern emerges in an uptrend, it alerts traders to a potential opportunity to sell a long position, or buy a short position.
A test was conducted using the sushi roll reversal method versus a traditional buy-and-hold strategy in executing trades on the Nasdaq Composite during a 14-year period; sushi roll reversal method returns were 29.31%, while buy-and-hold returned 10.66%.
Sushi Roll Reversal Pattern
Fisher defines the sushi roll reversal pattern as a period of 10 bars in which the first five (inside bars) are confined within a narrow range of highs and lows and the second five (outside bars) engulf the first five with both a higher high and lower low.3 The pattern is similar to a bearish or bullish engulfing pattern, except that instead of a pattern of two single bars, it is composed of multiple bars.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Reference Article:
https://www.investopedia.com/investing/market-reversals-and-how-spot-them/
In the past 2-4 weeks the volume of the 4 inverse ETFs has increased significantly (+2x)!
This means lower prices are more likely!
What could happen in the next 3 weeks if prices pass the Red lines?
Market Reversals and the Sushi Roll Technique:
In his book "The Logical Trader," Mark Fisher discusses techniques for identifying potential market tops and bottoms.
Capturing trending movements in a stock or other type of asset can be lucrative. However, getting caught in a reversal is what most traders who pursue trendings stock fear. A reversal is anytime the trend direction of a stock or other type of asset changes. Being able to spot the potential of a reversal signals to a trader that they should consider exiting their trade when conditions no longer look favorable. Reversal signals can also be used to trigger new trades, since the reversal may cause a new trend to start.
One technique that Fisher discusses is called the "sushi roll." While it has nothing to do with food..!
The "sushi roll" is a technical pattern that can be used as an early warning system to identify potential changes in the market direction of a stock.
When the sushi roll pattern emerges in a downtrend, it alerts traders to a potential opportunity to buy a short position, or get out of a short position.
When the sushi roll pattern emerges in an uptrend, it alerts traders to a potential opportunity to sell a long position, or buy a short position.
A test was conducted using the sushi roll reversal method versus a traditional buy-and-hold strategy in executing trades on the Nasdaq Composite during a 14-year period; sushi roll reversal method returns were 29.31%, while buy-and-hold returned 10.66%.
Sushi Roll Reversal Pattern
Fisher defines the sushi roll reversal pattern as a period of 10 bars in which the first five (inside bars) are confined within a narrow range of highs and lows and the second five (outside bars) engulf the first five with both a higher high and lower low.3 The pattern is similar to a bearish or bullish engulfing pattern, except that instead of a pattern of two single bars, it is composed of multiple bars.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Reference Article:
https://www.investopedia.com/investing/market-reversals-and-how-spot-them/