HELP>TRADING TIPS>PATTERN WARNING!

Trading Pro prediction system computes the stock market index forecasts based solely on past information, and its forecasting capability is possible because most of the participants in the market try to maximize their gains while making their own forecasts. There are as many opinions in the market as there are traders or trading systems. The sum of all these opinions converge to the market behavior we finally observe. Every one and each one of all those participants makes up the market and as a whole they behave in a fuzzy predictable fashion. However not all market participants have the same impact. The opinion of a 3Bill fund manager weights far more that the opinion of a drugstore employee. News also impact the market, and news most of the time cannot be predicted. For this reason the market gets shocked from time to time, and becomes unpredictable (for example when bond rates are adjusted), but soon after the impact, the predictor accommodates to the new situation and prediction accuracy returns. More complex perturbations are caused from time to time (one or two times a month) when one large investor enters or exits the market with a huge position. Many times the decision of enter or exit a market position has almost nothing to do with the actual market situation, but it is related to external market reasons (maybe the market participant needs cash for other purposes or projects). When a situation like this one arrives in a company with a huge position, the entering or exiting order is not issued for the total amount of money at once, since there would not be counterpart to concrete the operation. The trader needs to enter or exit the market bit by bit, along several hours, sometimes a complete market day, or even more than one day. In this case, the market is shocked with small hits one after another, and the behavior of the market cannot be predicted. This is the worst situation, because there is no warning that such a market player is at work, and we only can notice the situation, after losing some money. The way to avoid this type of situations is by having a clear money management plan, with the right hard stop loss, and soft stop losses. Once this situation is identifie, we recomend to stay aside or use other indicators. Trading Pro prediction model, can not help you during this kind of days. The PacMan pattern looks like this. We call it PAC-MAN situation, because when depicted the prediction over the market behavior, they scatter from each other showing a horizontal "V" . Pattern that resembles the mouth of a pac-man.