The chart you've shared uses a combination of historical data and predictive models, specifically focusing on Benner's prophecies, to suggest when to buy and sell in the market. Here's a simplified explanation based on what your chart illustrates:
Buy Zones Buy zones are indicated by the green shaded areas. These are periods where the historical data or predictive models suggest that market volatility is low and prices may be at a trough or more stable, making it potentially a good time to purchase assets. According to your chart, upcoming buy zones are highlighted with phrases like "YES YES BUY ZONE," suggesting a strong endorsement for buying during these periods. Sell Zones Sell zones are shown in red shaded areas. These suggest times when the market is potentially at a peak or there's high volatility, indicating that it might be a wise decision to sell your holdings to either take profits or avoid a downturn. The chart marks specific years like 2019, 2035, and other highlighted points with "SELL" to denote these periods. Benner’s Prophecies Benner's prophecies are a historical predictive model that uses past market cycles to forecast future ups and downs. Samuel Benner was a farmer turned market forecaster who, after experiencing financial loss in the 1870s, developed a cyclical theory based on pig iron production cycles. His broader application to financial markets aims to predict high and low years based largely on economic cycles. According to Benner’s cycles, markets would experience a patterned recurrence in peaks and troughs, which are used in your chart to predict future market movements. How to Use This Chart for Trading Decisions:
Identify the Zones: Look at the current year and compare it to the chart to see if it falls within a green or red zone.
Consider Market Conditions: Even though the chart provides years labeled as buy or sell, always consider current market conditions, news, and other analyses before making a decision.
Plan Accordingly: If you are nearing a red zone, plan to review your investments and possibly take profits or reduce exposure. Conversely, in a green zone, you might look for undervalued investments to acquire.
Monitor Regularly: Market conditions can change rapidly, and while historical models provide a guide, they are not infallible. Regular monitoring and adjustment of your strategies are crucial.
By understanding these elements, you can use the chart to make more informed decisions about when to buy and sell based on historical patterns and predicted future market behavior.