An Eerily Familiar Setup
Updated
The other day I reported that the Bollinger Bands on the ES futures we at their narrowest since the February highs. Since then, upon further scrutiny, I see other eerie similarities.
After the narrowest point in February, the Bollinger Bands expanded, as they have now as well. Furthermore, just before the February crash, the market formed a clear bearish wedge, the dip that formed the initial depth being the "first COVID scare" as news of the virus started accelerating.
Also, the form of the price action within each wedge has been familiar, which I have generalized with the orange poly-lines.
And finally, the duration in the first wedge from the dip to its conclusion was 13 days and it's now been 13 days from our latest dip through today.
We may be especially close now.
After the narrowest point in February, the Bollinger Bands expanded, as they have now as well. Furthermore, just before the February crash, the market formed a clear bearish wedge, the dip that formed the initial depth being the "first COVID scare" as news of the virus started accelerating.
Also, the form of the price action within each wedge has been familiar, which I have generalized with the orange poly-lines.
And finally, the duration in the first wedge from the dip to its conclusion was 13 days and it's now been 13 days from our latest dip through today.
We may be especially close now.
Comment
One more similarity: the 13th day of the last wedge was a Thursday, and today, the 13th day of this wedge, is also a Thursday.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.