Business and Finance

This Is The Strategy You Need When The Composite Index Is Bearish

Under certain conditions, the movement of the composite index like NASDAQ100 is sometimes very unfriendly for traders. What kind of conditions do I mean? Namely, when the composite index was attacked by many negative sentiments, as well as economic turmoil abroad as it is today. Or in other words, the composite index like NAS100 continues to experience correction/decline for a long time (let say for several months the composite index continues to fall), and although the composite index finally rebounds, but not long after that the composite index corrected sharply. So that the composite index motion is bearable. The decline in the composite index was held at a certain support level. On the one hand, the composite index wants to rebound but is still reluctant. In the meantime, if you need more tips for trading NASDAQ100, you can visit immediately.

composite index correction / bearish, usually marked by the characteristics that you will find in the market as follows:

1. The composite index cannot rise from its resistance
2. The composite index rose one to two days, the next day immediately fell
3. The composite index trend still tends to fall
4. The composite index has repeatedly corrected sharply when sentiment was negative

No matter how much the composite index drops, the composite index will still have a rebound. Indeed, sometimes the composite index trend tends to move down. However, after the composite index continues to fall to a certain point, then the composite index always manages to rebound before finally correcting more.

Yep, but if you pay attention to the rebound pattern, the composite index has even managed to rebound several times. In this condition, the stocks whose price is down, the correction will back up quickly.

So in my experience, if you are facing a composite index condition like this (it tends to continue to fall) the best stock trading strategy is a short-term trading strategy. So if you are already profitable, you realize your profit. You don’t need to think about selling stocks at a price very high.

This means that even though the composite index tends to be corrected, that doesn’t mean you can’t trade at all. You only need to adjust market conditions to your trading time frame.

Comment here