The Two Biggest Signs that the Market Might Crash

BY Stock Navigators
Share

FREE WEBINAR

This is how to start learning today.

10 people signed up today

Free Webinar →

Subscribe to our daily newsletter.

All the profits, none of the noise.

Please try again

Right now, long-term investors and swing traders are worried about one thing… 

An incoming crash.

So it’s natural that everybody is concerned with their long-term positions.

Especially with all the volatility we’ve been seeing lately.

Which begs the question: Is there some sort of early sign, or indicator, that lets us know if the market is about to drop?

The answer: Yes… if you use technical analysis. 

So what’s the first thing you should look for?

The 8-day exponential moving average (EMA) will drop below the 20-day exponential moving average.

In the chart below, the 8-day EMA is yellow and the 20-day EMA is purple.

Notice how the yellow drops below the purple when the Great Recession of 2008 happened?

content

This is our first sign of a market crash.

Our second sign is a spike in volume.

See the purple bars at the bottom of the chart?

Notice how there was no volume during 2007… and then just as the market started crashing we saw volume shoot through the roof.

This volume came out of nowhere… 

These huge spikes can only mean one thing - institutions were selling off their positions.

There you have it, these are the first two things I look for to see if a market crash is coming.

And remember, there is plenty of opportunity even if stocks drop over 50%.

That’s why I’m sending out trade recommendations to my Stock Navigators, complete with entry price, exit target, and stop-loss.

If you’d like to start receiving my trades, click here to learn more.

Stock Navigators

Stock Navigators

Stock Navigators has one mission - to help people improve their lives via trading. And it's all made possibly by our team of stay-at-home day traders who provide the most up-to-date analysis every single day. With over twenty years of combined trading experience, Stock Navigators helps you stay on top of the market.

Get started on your path to financial freedom

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

background z-10
ellipse animation