Catching turns by a Legend Trader

What this legendary trader is telling you is that he caught bottoms (turns) in the market over 40 years earning over $7 Billion. And when going short, he caught tops (turns). He was not waiting on moving avgerage crossovers, cup & handles, standard deviation, or any of the overly complex methods most traders gravitate to. To simplify price going from up to down, or down to up, just think of a change in direction.

Don't confuse catching tops with "calling the top." Short is the same as going long. Turn your monitor upside down and the turns will look exactly the same. The turns are nothing more than change of direction. If you left you home today and forgot your laptop, you would make a u-turn and head back home. That is exactly what the price of a stock does when it changes direction from down to up. Or up to down.

On a daily chart, it is not as noticeable. On a 30 min chart they are much more obvious. On a 5 min chart, it seems like waves in an ocean. And so on...

When the big guys move their $20 Trillion AUM around, they leave tracks just like a bear moving across a mountain in the snow. Easy to see the direction too. And when the funds buy and sell, they are "never" in total agreement on the next move, resulting in waves as some buy and some sell.

But roughly 70% - 80% of the time they they are moving in a herd mentality (pattern), making it easy to see which direction they are going. You can't hide millions & millions of shares being bought or sold. Just watch the price of the Nasdaq or QQQ which represents about 3,300 of the largest cap stocks like AAPL, MSFT, & AMZN. Example: Study the chart of Apple from the start of 2023 over the next 7 months resulting in a move up of +$72 or 57%. Footprints of Warren Buffett buying millions of shares of Apple are super obvious on a chart.

Warren Buffett has acquired 906 Million Apple shares worth $164 Billion. It makes up 47% of his stock portfolio and is the biggest holding. Buying 906 million shares of anything will show up on a chart as a steady, big run up. If you can't follow those footprints in the snow... You may notice that discussing a simple style or analysis like we are is not usually discussed on CNBC or other news media outlets? Does this have anything to do with the public losing 95% of the time? Study the turns which cause support and resistance areas, along with moving averages, and you will have a new pair of glasses to view the market with...