Investing is all about risk versus reward, do we agree? Separate emotion from analysis, also true? We always assume we will not perfectly time any move whether it is in an individual stock or the entire market. But, there are some great tools we use to enable us to see when the tide has turned. Print out the chart below and follow my logic. TD MA2 takes two separate moving averages, compares relative values to identify trend changes. In English, look below at the QQQ 0.00%↑ chart. Can you see how the color change indicated the “potential” and “likely” change to the up or down trend? The August downtrend change was incredibly profitable and there was little in the way of pain being short. The upturn since early January was the same from the long side.
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