Wednesday, July 20, 2011

7 Month Trading Range: Breakdown or Breakout (Part I)

US Markets have experienced a sideways trading range from January 2011 to July 2011. On January 1, 2011 the SP500 tagged 1296 and on July 18, 2011 SP500 touched 1296. This seven month trading range is clearly evident in the following chart:

This long lasting choppy market action begs the question that whether we are about to leave this trading range i.e. are we going to Breakout or Breakdown? In this regard, I will be posting several posts to analyze current market structure in conjunction with past experiences and predicting the future direction of the market, alongside risk management strategies.

Since next move in either direction will be explosive, it can result in gigantic profits. 

Note: This topic will provide the basis for the ClariTweet event: Discussion on the future market direction.

Next Posts:
  1. Breakdown - Top 
  2. Breakout - Sensex, Emerging Markets
  3. Academic Pattern of Breakout 
  4. Reasons of next market move
  5. Risk Management

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