This Page is about the past stock market crisis (Bear Market) that reflect on chart. When financial Crisis hit us we can "feel" the impact in many ways or heard about it no matter you care or not.
If you invest in stock market, this is your business! Try to Recognise the Chart Pattern, identify the action and movement of the bars, we do not know the crisis is coming (may be you do), it may not happen until the direction is clear, but we can prepare ourself and get out early when the chart confirm the Crisis before it hit us.
This is a Self Defense Skill!
Learn it and protect your Capital!
2008 U.S. Sub Prime Crisis
Here is not talking about how and why it happen. I show you the chart, picture spell a thousand words.
Before the Crisis
U.S. Dow index during 11 Oct 2007 at 14198 point form peak (its at New High), it failed an attempt did not break the resistance and test support (on 16 Aug 2007 form a "Hammer" candle stick reversal pattern its a Lower Low) about 12700 point and bounce off form neck line.
The rebound did not break previous peak and form a Lower High, then attempt resistance again but failed and broke the Neck Line on 8 Jan 2008! The Classic reversal topping chart pattern had formed.
It went lower to about 11600 point on 22 Jan 2008 and bounce off ("coincidently" 11600 point its about the Peak of year 2006 and 2000). This form a Lower Low and had fulfilled the criteria of "A beginning of a down trend."
2008 Financial "Tsunami"
After the Topping pattern and Lower Low had formed, Dow Jones Index attempted several times to break resistance but failed, until 18 April 2008 broke up ranging pattern, but cannot make it higher than 13140 point.
On May 2008 form a topping pattern and broke support trend line and neck line on 21 May 2008. Down trend continue towards support 11600 point.
On 26 Jun 2008 support broke decisively by a Big Down Bar! After form a Lower Low on 15 Jul 2008 rebound to test resistance twice but failed.
Finally broke support trend line on 4 Sep 2008 (When I start to heard about Sub Prime Crisis). At this point of time the market then "confirm" this was a BEAR market!
If you recognise the pattern of the down trend, would you be able to exit earlier?
To be continue....
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