We received a question about the current market in relation to our Phase Analysis. The member asked if we could make a new video with a market update so here it is. We are well aware that 1 video is not enough for you to learn to spot the phases correctly every time but it is a step in the right direction. It takes a lot of screen time to be able to successfully analyze the market so it is ok to make mistakes when starting out. That is why you can use a simulator when learning new things in trading.
We show the Phases on 3 different time frames so you can see the difference in a real phase 3 or just some topping price action in a Flag Pattern/retracement. In a bigger Phase 2 there is a big difference so it is important you can practice so you can spot the difference.
The member mentioned that it is hard sitting on the side lines and not being in the market, especially after such a big rally. We never recommend chasing the market after missing the optimal entry. If you lose money after chasing the money you will be kicking yourself and it will have terrible impact on your trading mindset.
As of now the market can do 2 things: either form topping price action or continue up. This does not help you much as a prediction goes but that is ok with us because we are not fortune tellers! Every day we see these people on CNBC coming with predictions but the truth is they do not know anymore than you or us. They are just guessing and that can cost the reader a lot of money. What we can do is to trade it wisely so if you go long now you should use a tight stop in case the market stalls. This way you only lose a small amount but you are still in the market in case it decides to put in a decent rally.
As always, stay safe and trade wisely!