NOTE: If you prefer to watch me read you this article rather than read it yourself, we’ve provided a video for you right below this sentence.

Have you ever watched a sharp market decline finally start to reverse, only to hesitate on pulling the trigger because you weren't confident the bottom was in?

Or worse—have you jumped into what looked like a reversal, only to get stopped out when the market resumed its downtrend?

You're not alone. Identifying genuine market turning points is one of the most challenging aspects of trading, but also potentially the most profitable when done correctly.

At GammaEdge, we've developed a systematic framework to identify these critical inflection points using our proprietary tools. Today, we're sharing our exact methodology for spotting market bottoms—specifically focusing on the transition from bearish to bullish market structure — and how you can come to recognize this shift to make real money.

Note: While this article provides a thorough overview of our market turning framework, each tool deserves its own deep dive. We've linked to additional resources throughout for those wanting to better understand what each tool unlocks for your trading.

Why This Framework Matters

Markets don't move in straight lines – they oscillate between periods of bullish and bearish control, and it’s this tug-of-war that creates the uptrends and downtrends in price action (which we then trade). Understanding where we are in this cycle gives you a tremendous edge.

Think of market reversals as a series of dominos falling in sequence, not a single event. First comes a shift in real-time buying pressure, followed by changes in options positioning, and finally, price confirmation of the new trend. By tracking these dominos systematically, you can:

  1. Spot potential reversals before they appear on price charts
  2. Confirm whether market behavior aligns with your bullish or bearish thesis
  3. Manage risk by identifying early when conditions change
  4. Position yourself ahead of the crowd, rather than chasing moves after they're obvious

Let's now walk through our systematic approach for spotting these market turning points—a framework that combines momentum analysis with options market positioning to give you a comprehensive view of market structure.