Its commenly said that no one can predict the flow of a market yet there is some factor that is able to predict it exactly ! anyone have an idea or which type of people are able to predict the market exactly a needed and yet make millions and maybe billions due to that !
The people that say it can not haven't heard of William D. Gann. W.D. Gann invested in the markets during the early part of the 1900's and died in the 1950's. Gann has an incredible track record of predicting when and where a market would turn. There was an instance where news reporters followed him around while he traded and out of something like 288 trades, he was correct on 284 of them.
Gann would do things like one one trade, he said that Sept. Wheat would trade at $1.30. At the time he made that statement, Sept. wheat was trading in the 84 cent range. In other words, the Sept. wheat contract would have to trade at $1.30 before expiration. I believe he made that statement in July of that year, meaning wheat would have to climb 46 cents in 2 months and a 46 cent move is quite a bit. On the last day of trading, wheat was still in the high 90 cent, low $1 range. An hour before the trading session ended and the Sept. wheat contract expired, wheat prices took of an hit a high of guess what - $1.30 and not a cent higher.
There was one gentlemen (who's name I forget, it's in an article on my work computer) that took all the cycles that are present in the stock market and made a composite cycle. For a period of about 6 years, he traded only on that composite cycle and had an unheard of 185:1 win/loss ratiol.
I personally have been able to call market turning points to within 1 tick of the price high/low. It's not easy, but I've had done is a couple of times.
W.D. Gann wrote several books on trading, but the concensus is that Gann did not share his secrets in his writings, that he died without ever revealing how he knew when and where markets would turn.
For example, there is a consistent pattern that turns up in the market called Fibonacci retracement levels. Leonardo di Pisa was a 13th centurn mathematician that discovered a unique mathematical sequence that exists in nature. People have applied Fibonacci numbers to the market and have found an that the markets move within the boundaries of Fibonacci sequences. For example, if you take a market swing low and then find a swing high, take the difference between the two and multiply by .382, .50, .618 and then subtract those numbers from the swing high, the markets downward reaction would stop at or very near one of those numbers. I have witnessed it many a time myself and have been able to call when prices would turn and resume their trend.
The people that say it can't be done have very little to zero knowledge of such things. I personally know one gentleman that called the top in the '87 crash 5 years before it happened. He as 2 days too early and 2 points too high - and remember, he called it 5 years before it happened. And by the way, he makes really good money trading the markets.
I have an idea of how he did it, but the logic behind it is rather difficult and I am having trouble grasping it.
Yes, that markets are predictable, but it takes a lot of study and a lot of time.