Let's look at how markets historically recover.

What price action we could expect from a bottoming market.

When doing my research on how markets crash I naturally also looked at how they bottom and in this I found a lot of useful tendencies. I found “Picking lows” historically was not that hard and also once a low was made there tend to be recurring themes to build a bull trade plan around.

Since we now have potential failure of the bear market, let’s look more at how that’s happened over the years. We’ll go deep, first looking at the historic crashes of the 1900s, then looking at the famous crashes of our lifetime in the 2000s and conclude by looking at the dummy crash of 2019 through 2020.

We’ll use the exact same methods of analysis for all of them and by the time we’ve completed this you’ll have a simple strategy which is easy to chart up and execute which backtests as what I’d consider to be as close to optimal performance as possible in recovering market.

If the market is indeed turning, there’s 100 years of clues as to what to do. Let’s look at them.