Decoupling
Ameet Rai
Electrical Engineer and Swing Trader focused on achieving super-performance. Through extensive studies of previous super-performance stocks and proprietary data-based research I provide guidance for new traders with an emphasis on building processes and teaching traders how to think and trade for themselves.
Published: August 12, 2024
Decoupling occurs when individual stocks or a group of stocks start to act independently of the overall market trend. Typically, stocks move in the same direction as the broader market indices. However, during decoupling, some stocks may rise even when the market is falling, or vice versa. This divergence can be an early indicator of a significant trend change in the market.
On Decoupling Days, while the market is struggling, you might see a 50/50 or even a 60/40 split in stocks, with many still trying to push higher.
This scenario suggests that these stocks are moving on their own merits rather than being dragged down by the broader market.
I discuss the concept in video below with some examples ↓
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