In 2007, Tim managed to enter a short position after the identification of a long tailed bar followed by a long red bar. Shortly after, the market turned against him by almost 100 points. What pain!! “Ouch!!”. He remembered the ratio play that his good friend has used in the year 2000. He remained steadfast.
Tim has also entered a second short position in the last quarter of 2007 when he saw another another long tail followed by a long red bar in an uptrend market.
And the reversal of the market finally came.
In 2008, the market plunged. S&P dropped 200 points, 700 points and up to 800 points in early 2009!!
The Lesson in 2000 taught Tim well...
