Turning point probabilities
I spent the last few hours backtesting MAE(maximum adverse excursion) of various trading instruments and adjusting indicator settings accordingly.
one of the main findings was that we percentage-wise over the last dozen or so sessions, have a much stronger demand after declines
meaning while news pushes markets down-followed, buying interest (like today) is more vital than over previous months
This is a supporting factor to gain confidence over a possibility of a year-end rally and adjust the long versus short ratio accordingly.
Should this rally ensue, it can be swift and more substantial than expected.
And at the same time, also abruptly over once shorts come in in the New Year.