Home Trading Strategies Collapse in the Stock Market, What Happens Next?

Collapse in the Stock Market, What Happens Next?

Collapse in the Stock Market, What Happens Next?

this uh this market sometime back in the study of January we had also a very steep decline from the highs of two to eighty eighty right till the low of about you know two five trio so that’s at the decline of about three hundred and fifty points okay so over here what you’re seeing right now is getting a decline of this similar magnitude over here right right now it’s not about it’s about trainer points decline and for those of you who have been no following me you know that I like to you know use the two hundred period moving average kind of like a guideline right to show what’s uh what I you know you should be bullish or bearish so at this point you can see that the price so it did break and close below the two hundred period moving average right so so based on the moving average right a long-term trend right right now you don’t want to be you know bullish anymore however right I wouldn’t really know go ahead and say you know shut the market and sell all your positions yet because all right if you read the price section or the structure of the markets you know that right now this is actually the key level that you want to be paying attention to okay this area of support somewhere between a 2,500 to 2,600 area around this hundred point reach so at this point in time right to me this is the key level key market structure that you want to look for on the S&P 500 if you know the price breaks below it right then I would say you know all hell has broken loose right but until then right this to me represents that a strong area of value an area where buyers could potentially come in and push price higher so what could possibly happen is the market let’s see come down lower to this level right and then from there make a possible reversal back up higher okay so until this level is broken right I won’t be entirely bearish on it no doubt I can see that you know over the next few days over the next few weeks right there could be potentially you know bearish momentum coming into this area but again this to me is a strong area of support okay and if this levels hole right we could possibly know even you know go back up higher retesting this heights over here so this to me is a key level to watch for on the S&P 500 so yes the market is declining yes it’s buried right but at the same time right this is the key level that could actually turn the tides so I wouldn’t be you know go all in short at this point in time the SMB 500 so that’s my take on in right if you look at the China a 50 this one over here is looking more bearish so for those of you who are involved right in the in the China stock market you can see that this one over here clearly right it’s in a downtrend if you just pull out your 200 ma the price is already below it you look at market structure right it has broken below this area of support once broke another one over here and right now this is the new level area of support at this point over here so if you ask me right you know there’s a good chance that this area of support right could break and continue lower so for this market the China a 50 it’s really in a bear market no reason to be buying in fact you should be shorting alright or if you can shot for whatever reason stay in cash right but don’t look to buy stocks right now on the China e-50 it’s better to stay on the short side and where you want to short possibly opportunities rise over here and this our area of resistance right the price comes up higher right possible shorting opportunities here and in anticipation for lower prices to come on the China a50 okay and not a market I like to cover I think that a lot of you are involved in is the nifty 50 this market again somewhat similar to the S&P 500 it has broke below the 200 period moving average however however from a structure point of view right you can see that this is the key area of support around a ten thousand area this round number so again this over here right until the price can clear below this level until it can break and close below it right right now I would say you can stay neutral to slightly bullish because right now prices coming into this key area of support so this again right it’s a possible level to look out for however if it the price breaks below it you know just breaks below it okay this is where you know all bullish bets are off right and you’ll be looking too short you know retracement or pull back towards this key level over here on the nifty 50 in anticipation of lower prices to come okay so this for the nifty 50 I’m slightly neutral to bullish right unless the 10,000 level is broken that’s where I’ll start to look to you know shot this market so generally you can see that the worldwide stock markets it’s in a transition right now okay from long term bullish to right now showing signs of crack I won’t conclude that you know it’s an entirely bearish territory at this point in time right because there are still key structure that the market has to take up off right before you know I would say the sellers are in control so those are the few levels that I have shared with you right but basically we have talked about the SMP 500 this one key levels around this 25 to 2600 level see whether you know you can hold and reverse higher or it breaks down below then this would be the next level to look for for previous structure as a trend continuation move lower okay and it’s for the China 850 it’s a really bearish as you can see over here price making a series of lower highs and lower lows looking to shot this right at this area of resistance and finally the nifty 50 okay price again possible to see if this level would hole or break giving you a you know possible shot set up towards the downside okay so okay we have a SaaS excess well right so let’s cover that as well we’ll have a look the SX is basically the Australian our markets not sure they have it SX 200 but issue and the futures so I’m trying to find the ESX is there a name for it Australia 100 now we can look at the CFP it’s read pretty similar to ESX okay so this is the stock market for the Australia you can see again a strong bearish momentum towards the downside coming into this key area of support ok so again if you just use the 200ma price is below it right so yes I know the 200ma is a good general guideline but hey you know I’m also a price action trader and I like to look at market structure I like to ask myself where is the last line of defense so for the ASX right this to me is the last line of defense over here somewhere between the 50s fifty five fifty to fifty seven hundred area over here so you can see that very strong bearish momentum coming in and I won’t be at this point I wouldn’t try to shut the market at this point in time the reason being is that if you were to go shorter I just think about this if you to go short right now at this point in time you’re going shot at this level over here and where is the logical place for you to put a stop loss right you probably put it somewhere above this market structure somewhere here and if you look at it from a risk to reward standpoint this is your potential risk and what is your reward well this is actually no reward at all because it’s coming straight smack into this area of support okay so I would be cautious about going shot at this point of time from a risk to reward standpoint it’s a it’s very poor in fact it seems like you’re gonna be chasing the market right now if you want to show the market so again power go buddy this game to see if this level holes we are you could possibly write get a strong reversal right over the next few days so I guess that’s what this stock market likes to do right comes down and quickly reverse back towards the upside so this is a possible area where the market could reverse or if it doesn’t reverse right then chances are at this level if it breaks down again you can look for always you know pullback trading opportunities and you know to see if you can get a much more favorable risk to reward towards the short side so this is for the ASX too late too short right right now it’s more way to see what the market does and then you react accordingly alright so with that said I guess are the few analysis that I want to do one in the on the markets so we can actually I’m just taking a few questions right now before I conclude this short session over here so this is the first time I’m actually running this on YouTube life pretty impromptu right now I have no idea how it’s going to turn out so so anyway all right I’ll just answer a few questions if there’s anything you have right maybe three to five questions and we’ll call it a session okay so so one question is from IDT all right how do you read price chats probably so here’s the thing right I mean I can do a full training session on this right but the general guideline is that you wanna ask yourself what stage the market is in is it in them and I’m trained firstly is it in a possible accumulation stage is it in a downtrend is in a range so when I look at this for example this is a shot right I look at it and to me this is in a long term uptrend okay then I start identifying market structural levels on the challenge the next thing I see that you know this is an uptrend right now it could possibly be a very deep pullback or the start of a trend reversal I have no idea which is which so this is why I let the market structure tells me so this is where you see there is a key market structure over here this area of support so I tell myself right right now I know this is any area of support and before all you know the buyers could come in and push price higher so if the price rallies back above this area of support showing signs of strain right to me then it’s telling me that you know this market could possibly no hit higher over the next few days but if the price breaks below this key market structure this key level over here the last line of defense then this could be something more serious for this market and any pull back towards the key level this area of value right would be shorting opportunities so again you’ll it all starts down from asking yourself right you know what is the current market stage what phase is it then identifying the key market structure of those are of the market you’re looking at if the market tends to break key market structure it’s telling you one thing right that selling pressure it’s a is in control sellers are in control and you want to be shorting the markets so right now you can see that the market has broken the one structure level this area of support our noise at the second one over here I have no idea where it’s gonna break on its gonna hole so this is why I know I would see what the market does and then react accordingly okay and uh Brian asked do you do you do options trick I don’t do options trading so I currently comment on that and one last one from Khan is you wanna talk about Bitcoin right so so let’s you know whatever we have a look at Bitcoin right before we conclude today’s session so you notice right Bitcoin again same analysis right what you can see over here Bitcoin is I like to zoom on my charts you can see that series of lower highs lower highs lower highs lower highs lower highs lower highs lower highs coming to this area of support right this it’s telling me right there right now the buyers just don’t have you know any Strang in them because if you look about if the buyers are in control right if if bias there’s a lot of strong buying pressure in this a market notice how much the market can push the price I how much the buyers can push the price higher right from here seven thousand to about high of twenty thousand then he had a strong draw a strong declined about sixty percent then the buyers coming in push from here to here okay then a seller’s push back to this area of support by a step in once gave from here to here then the sellers pushing back all the way down to this area of support and then the buyers coming from push it from here to here so if you look at it right in the buying pressure it’s getting weaker and weaker because if you look at me buying the string of the buyers the range of the move is getting shorter and shorter right from this large range over here to now in this range finally to this range then to this small range then arranged gets smaller smaller and right now pretty much right the market is somewhat did look at the volatility of this market it’s pretty deep and if you ask me right my bias for this right is that the market is likely to break the six thousand levels because of the fact that no the buyers are just unable to push price higher and you know the series of lower highs just keeps getting lower and lower of course I could be wrong right so this is why if you want to confirm the breakdown you wait for the market to break and close below this around this 6,000 the area right to conclude that this market is likely to hit lower of course all right the market could just do the opposite and where I would remain where I’ll turn bullish on is if this market can actually break this uh this downward trend line that you see over here okay especially break break up of this area right this would be the level I’m looking at this 6770 level because once it breaks above this swing height it also breaks above this uh upward trend line so this could be a temporal sign of strength from the bias so in the meantime right I’m still would say bearish on Bitcoin right and this market right now seems a bit boring as volatility has you know died out over the last few days a few weeks okay so with that said right that’s that’s all I have for you in this session right thank you for attending right if you have enjoyed it right hit the thumbs up button write this their thumbs up button on me below this video okay subscribe to my youtube channel if you haven’t and I wish you good luck and good trading I’ll talk to you soon you


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