Learn to Recognize Market Type

[vc_row css=”.vc_custom_1548111018731{margin-right: 20px !important;margin-left: 20px !important;}”][vc_column width=”3/4″][vc_custom_heading text=”Learn to Recognize Market Type” use_theme_fonts=”yes”][vc_column_text]Dr. Van K. Tharp explains market type in greater detail and gives examples. One important concept that Dr. Tharp uses in this video is the notion that you can use the System Quality Number (SQN) as one indicator of market type. The SQN is typically applied to trading systems, so by using the number for classifying market type, we make the inherent assumption that we can evaluate the major market index as if it were a trading system. If the system number is high, then we could say that this implies something about that market index; namely, that this market might be a good place to invest for people who want to buy and hold that particular index (at least as long as the number stays high). If the number were to decrease, then that condition has changed.

It follows that using the SQN as an indicator of market type can be an excellent measure of when conditions in the market have changed, and when you might need to emphasize the use of a different trading system. Watch the video for additional insight.[/vc_column_text][vc_video link=”https://www.youtube.com/watch?v=Mz3PygyMi5I” el_width=”90″ align=”center”][/vc_column][vc_column width=”1/4″][vc_widget_sidebar sidebar_id=”flash_right_sidebar”][/vc_column][/vc_row]