What these stock index charts in 2007 tell us about market tops
3 major lessons to learn from chart history
- 10-20% correction follows market tops.
- Rallies happen in a downtrend.
- Market corrects slowly at first and then very quickly.
There is a saying that “history does not repeat but it rhymes“. As long as investors operate with greed and fear, markets will behave in the same way.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.