A trader explains how to spot continuing trends using small repeated price moves called "rizzies" and Bollinger Bands. When price stays near the upper band in these small moves, it signals mean reversion is coming. Chart examples from 2020 and 2022 show the method can pinpoint market bottoms.
I would say to traders, because I know everyone has their own trading strategy, but we all need to identify trends. This is how I judge if a trend is intact. If it keeps forming these little rizzies and it keeps going down and it keeps hitting these points downwards, I like to add like Bollinger Bands to it too. So the middle line is like reality to me. If it's up here, it's getting out of reality. If it trades above here, you're out of reality. At some point, mean reversion or coming back to reality has to take place. When I use these little rizzies. I like when the first one happens towards the top, the Bollinger Band, like up here or above reality. So it will keep forming these. When I pull up the charts and I show— I want to go through 2022, we're going to go through 2020. It is going to blow your mind that this is so simple and looks so stupid, yet it can almost nail the bottom like exactly.
