Predict Market Reversals With Z-Scores

Most market rallies are started by ‘smart money’, i.e. one or more institutional investors betting on the long-term prospects of a stock or country. This usually creates what we call a ‘breakout’.

Next, other investors start jumping in, each paying more than the group before them. The last ones to join are usually regular folks like us, the everyday investors. By the time we get in, the smart groups are usually cashing out, and others follow suit. This triggers a market correction, and suddenly, it feels like we got played :flushed:

If only there was a way to predict reversals… :sleepy:

Well, there is a way… and it has its roots in a simple mathematics concept that we learned in 8th grade!

Learn about it in our latest newsletter issue :white_check_mark:

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