There are numerous Stock Market Timing Strategies here’s one to ponder today:

stock market timing strategies

Market timing is all about timing the swings in the market to make investment decisions.  The most difficult part of market timing is the performance of the brain is often at odds to us in making the right decisions.  While we won’t get into exactly why the brain works against us, just understand that our dopamine system drives 98% of our behavior…

I developed the above indicator when I got into the stock market.  It takes a dozen tools used by traders to ‘decide’ and normalizes each so that they trigger signals in a similar time period and in a similar level.  The resulting output is a sine wave (in normal market conditions) and the level and direction of the indicator tells us what the market is doing.

For example, when a market moves sideways or tests highs or lows, price action may look the same, but what’s happening behind the market is often not – and the most telling.  Remember, anybody can pull up a stock of the market, so it’s of little use (again, some people will say it is, but remember, that’s a function of the brains dopamine system).

So what do we have here?  Quite simply, the market has been moving higher off a longer term buy signal – the release of a high level of energy can last a signifiant amount of time in the market and we’re seeing the extent of that now.  The key will be what happens to this energy as the market retests previous levels.

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