How To Identify Market Tops and Bottom

There are certain characteristics of the markets that take place almost all the time, when the indexes are about to approach an intermediate or long-term top or long term bottom.  In order of importance, this is what you have to look at to identify market tops.

1. Time
2. Sentiment
3. Market Breadth
4. Price  patterns
5. Valuations

• Time Profiles: Major tops/bottom  are made after the markets have been going up/down for an extended  long period of Time. Indian Market follow the 8 year cycle , Major Tops are formed after 8 year, 1992,2000,2008 have been the major tops in Indian market.  We have formed a Major Top is  March 2015 @9119 from where we have corrected till 7400 a correction of almost 20%. Any market which corrects more than 20% is technically in Bear market.  But time alone will not give you the sufficient information you need to identify market tops/bottom. All of the key identities must be in place at or near major market tops/bottom.

Sentiment:

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