Tops Are A Process, Not A Panic

StatsEdgeTrading

Everyone’s yelling bubble. History says tops don’t nuke overnight — they grind, build a range near highs, break support, retest… then slide. Think 2000, 2008, even COVID’s “fast” bear had a clean support break and bounce before the real damage. Same rhythm showed up in 2018 tariffs and the 2022 drawdown.

What to watch: range lows at highs, major moving averages, anchored VWAPs. When support cracks and fails a retest, scale down. If it rebuilds, reload. The point isn’t to nail the exact top; it’s to avoid the ugly middle.

Action plan
• Mark the range highs and lows on your core index.
• Predeclare trim points and time stops.
• Keep dry powder for the reset.
• Track risk assets for confirmation.

At StatsEdgeTrading and StatsEdge Pro we run systems with 25 plus years of testing so decisions aren’t vibes. Quant beats vibes. Get the free courses and newsletter at www.statsedgetrading.com.