When a market has already sold off for multiple days and the selling accelerates that can often mark a point where a bounce becomes likely. Monday’s selling triggered the Quantifinder study below. All stats are updated.
These results appear extremely compelling. The consistency is very strong. Of course the market is always capable of doing things it hasn’t before. We’ve seen plenty evidence of that since Quantifiable Edges started. So although this condition has led to a bounce in every instance evaluated over the test period, it’s no sure thing. In fact just before the period shown there were 2 trades that were losers. Still, the evidence appears strong enough to suggest a bullish inclination.
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