Panic Zone Charts

The purpose of the Panic Zone chart, is to highlight irrational market activity. Irrational market activity or Panic, often causes market reversals. Low Risk Buying Opportunities often develop after Panic Selling (1). And Low Risk Selling Opportunities often develop after Panic Buying (2). To find Low Risk Buying Opportunities, we must be patient enough to wait for Panic Selling, plus enough downward momentum, to form a new Pressure Zone. On this chart, we can see two examples of this situation occurring (3). At the very top of the chart, you will see a small red indicator, which develops when a potential market top is in place (4). At the very bottom of the chart, you will see two oscillators. The squiggly black line is a cycle oscillator (5), while the blue and red straight lines are a trend of oscillator (6). A Low Risk Buying Opportunity can be confirmed when either of these two oscillators start to move up from the bottom of the chart (7).

Panic Zones Chart

After viewing the Panic Zone chart, you should be able to determine your Market Bias towards this stock, are you Bullish or Bearish?

And do you see a Low Risk Buying Opportunity, or a Low Risk Selling Opportunity?