One of the holy grails of market analysis is to be able to identify significant tops and bottoms with a reasonable degree of certainty. I compared daily volume on the day of a market extreme with its average over the prior week, month, and six months. I also compared volume in the week prior to the extreme with that of the week after.Everyone loves a good reversal candlestick charting pattern. So what does it all mean when we unpack it?On average, each market tends to show some negative divergence in momentum. Moreover, you can see that on many of them the Chinese market tends to be an outlier.When it comes to making market extremes, history clearly doesn’t repeat.

Source: Economic Times April 09, 2018 15:11 UTC