1) Moving Averages — Price finally crosses the moving averages to the downside after leading the averages from above. If traders didn’t buy the price breakout to the upside, traders mustn’t do it now but, instead, start to fade the upside breakouts carefully and fade the downside breakdowns.

2) RSI, and Oscillators — After a solid series of bad overbought signals in the bull market, traders finally find more oversold indicators appear ing. As the trading market continues, oversold and overbought in dicators become equal in number. The fact that the numbers even out indicates the complexion of the market is changing from uptrend to trading.

3) Stochastics — In the bull trend, the crossovers from overbought were more often than not false signals and the crossovers from over sold, if they did happen, were valid buy signals. Now, as the market fl at tens out, traders will find the crossovers from either side to be valid and can also initiate positions with profitability.

4) On-Balance Volume and Tic Volume — This technique fails when you try to use it to forecast imminent price breakdowns. These cumulative volume indicators would not begin to signal distribution until price deterioration was well underway. The best signal that could be emitted would be a flattening of the price trend signal.

5) Elliott Wave — According to strict Elliott Wave tenets, this application does not exist per se: A bull market turns to a bear market upon its completion. Elliott Wave would not consider the existence of trading to bear market designation, but bull to bear immediately. Yet, traders can observe that the two types of corrective markets alternate with each other: if a previous correction was one of two types (fl at or zigzag) then the second of the set will be the alternate type to the fi rst. In this way, traders can predict something about the nature of this market phase