Investopedia Academy – Penny Stocks Trading

T. Livingston – Market Bottoms
Using Price Action, Volume, Moving Averages, Sentiment, and More to Spot Market Turning Points
Some people think of market bottoms as an exact moment. Others think of it as something only a professional or a genius can catch. Others see it as fleeting and impossible, almost like a fairy tale.
I don’t see market bottoms as any of these things. In fact, I don’t even care about buying at the exact bottom. Instead, I look for clues to determine when I believe a market bottom is in, and then when the current is at my back, I begin to take positions in the stock market.
In this course, I discuss the criteria I use to determine the market’s health and when a bottom may be in. I’m going to discuss how to use moving averages to determine the market trend, how to use volume to spot when big institutions are starting to put their money into the market, and how to use sentiment to determine if the trend is about change. In addition, I will illustrate the importance of using the action of individual stocks to gauge the health of the market. There’s even sections on seasonality and the presidential cycle so you have a general idea of which months and years are best to invest in the stock market.
The second part of the course is my favorite. In “Back in Time,” I look back at some of the most important bottoms in history. I go all the way back to 1932 to look at the signs that the bottom was in and a buying opportunity of a lifetime was taking place. I also analyze the early 1980s, 1998, 2018, and more so that you will be able to spot similarities during future market turning points.
What You’ll Learn In Market Bottoms
Introduction

Introduction to Market Bottoms
Disclaimer
Bulls, Bears, And Insurance Companies: Some Statistics To Paint A Picture
The Market Sentiment Cycle

The Market Stages
Secular Bull and Bear Markets
Follow The Big Money
Sentiment Indicators
Seasonality
The Presidential Cycle

Presidential Cycle

Monetary Indicators

Don’t Fight The FED
Recessions & The Stock Market

Sidelines Indicator

Margin Debt Indicator

Leadership Stocks
New Highs New Lows
McClellan Oscillator
Back In Time

1932 Bottom
1968-1986
1998 Bear Market
The Dot Com Bubble Bursts: The 2000 Stock Market Top
2007-2008 Bear Market
2010 Correction
2011 Bear Market
2018 Bear Market
Summer 2019 Correction
2020 COVID-19 Bear Market Bottom
2022 Bear Market: Part I
2022 Bear Market: Part II
2023 Market Bottom

Sample Trades

Bitcoin 2017 to 2019
2018 Bear Market Sample Trades
2019 Correction Sample Trades

Just For Fun

Yield Curve
Panic of 1907
1929 Stock Market Crash
The Dot Com Bubble Bursts: 2000 Market Top
ARKK: Topping Like It’s 1999

Final Thoughts

Summary of Indicators
Final Thoughts

About T. Livingston
T. Livingston is the author of Trading Within the Box: Early Entry Points for Breakout Traders, Swing Into It: A Simple System for Trading Pullbacks to the 50-Day Moving Average, and The Education of a Trader. He is widely followed on Twitter for both his educational content and market analysis. After struggling for years to make money in the markets, he was able to drastically turn his trading around through a combination of risk management techniques, buying and selling tactics, psychology, and spirituality. You can learn more about him, his trading courses, and his market insights at TLivingstonBlog.com.