kylesutherlandsmith45

Finding the bottom: defining support

Long
NASDAQ:NDX   Nasdaq 100 Index
My idea is based on using parallel channels with two oscillators to find historical turning points. Assisting the basic idea with geometrical angles. What I would draw attention to is the unbelievable low reading on the DPO of about -3770. In this time series it has not been that low before (1991-2022). I am basically looking at waiting for a retest of the RSI at 49.03 and the DPO at -965. Actions will depend on what happens then. If it is rejected and then heads back lower this looks like a replay of the 2001-2002 bear market. If RSI finds support at 21.32 this could mark a bottom and be a time to start going long the Nasdaq 100. The rsi could also test 20.84 which was the low of 22/sept/2008. Either way on a successful retest of one of these numbers I think a 1% to 3% position size allocation would be an acceptable risk to take.

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