Traders will forevermore remember this day– May 6, 2010 as “Black Thursday“. On this day, the Dow Jones industrial average fell 1,000 points shortly after 2:30 p.m. Although it rebounded in a matter of minutes, this left many traders shaken and terrified.
What caused the flash crash? Some will say that it may have been triggered by a trader error. According to multiple sources, a trader entered a “b” for billion instead of an “m” for million in a trade possibly involving Procter & Gamble. The U.S. Congress demanded an explanation, but only time will tell what they will find out.
A lot of questions were unanswered after the stock market plunged. Who or what was the culprit? Why did markets spin out of control so rapidly? According to Scott Shubert the economic cause of the crash is less significant than the clear signal that was generated in advance on technical analysis charts which is the same as all market turning points on all time frames.
Putting all speculations aside, trading industry insider Scott Shubert saw this flash crash coming TWO days before May 6. Apparently the ability to see these turning points in advance is what enables him to enter and exit profitable trades like clockwork in the Forex currency market. Check out the video above and see for yourself.
