Tonight's update shows where we are now.... right on the upper blue "megaphone" pattern blue line.
Many traders feel that since we didn't really crash hard after the July highs that this pattern has been voided.
However, I humbly disagree. If the trader would look carefully, we came close but still did not touch the upper blue line as shown by the yellow flag note in July.
However, we ARE here now as shown.
In fact we may see a bit of "throw over" the top blue line.
Lets think about the trader psychology for a moment. What would convince the bears to capitulate? At this point a strong breakout above the blue line? I know my emotions would doubt the "bearish thoughts" I have had for a while. Hmm... Good news from the Trump tweets? China? who knows?
It is interesting if we dig a little deeper about the pattern.
Did you notice the time from both major lows is equidistant on Nov 11-15? (see the blue notes LOW-LOW-HIGH). No guarantees here, but it does happen frequently to plan trades with.
How about the full moon this week also on the Nov 12? Many times market tops are at full moons. What would make traders give up on the huge bull run since Dec 2018 lows?
Impeachment? China deal? world events? technicals say reversal at hand.... we're just waiting for the "news" to catch up!
Have you been watching the RSI? We have noticed divergence now... lets see what this week brings...
watch for support to break...
If it does, the interesting ratios identified could be fun to trade with with the huge ABC patterns down.... way down!
Many traders feel that since we didn't really crash hard after the July highs that this pattern has been voided.
However, I humbly disagree. If the trader would look carefully, we came close but still did not touch the upper blue line as shown by the yellow flag note in July.
However, we ARE here now as shown.
In fact we may see a bit of "throw over" the top blue line.
Lets think about the trader psychology for a moment. What would convince the bears to capitulate? At this point a strong breakout above the blue line? I know my emotions would doubt the "bearish thoughts" I have had for a while. Hmm... Good news from the Trump tweets? China? who knows?
It is interesting if we dig a little deeper about the pattern.
Did you notice the time from both major lows is equidistant on Nov 11-15? (see the blue notes LOW-LOW-HIGH). No guarantees here, but it does happen frequently to plan trades with.
How about the full moon this week also on the Nov 12? Many times market tops are at full moons. What would make traders give up on the huge bull run since Dec 2018 lows?
Impeachment? China deal? world events? technicals say reversal at hand.... we're just waiting for the "news" to catch up!
Have you been watching the RSI? We have noticed divergence now... lets see what this week brings...
watch for support to break...
If it does, the interesting ratios identified could be fun to trade with with the huge ABC patterns down.... way down!
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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.
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.