Picking Tops is Harder Than Picking Bottoms

(and both are harder than trend trading, but that's a different story)

1. People hate to lose money (because money equates to power and freedom) and will therefor fight tooth and nail not to, so;

2. All “critical” markets have always been and always will be protected from decline to whatever degree possible and deemed necessary by the principle participant group, so;

3. Technical methods of projecting bottoms in markets will therefore tend to be more precise than those same methods used to project tops, also giving rise to the shop worn stock market aphorism, “tops are a process, bottoms are an event”.

In other words, rich or poor, people are always looking to keep what they got, so market tops are gradual affairs that are "fought", forming a dome shape on the charts. And people are also always looking to increase wealth when they can, and everybody loves a bargain, so market bottoms bring out legions of bargain hunters, and form a V shape on the charts. (click for larger)