Also, note that there are 10-11 bars from A to B, B to C and C to D. This shows symetry of time. We also have 81 bars from X to A and 31 bars from A to C. If we divide 81 by 31 we get 2.612 which is close enough to 2.618, a strong Fib number
Can we use these patterns in 15 min or 5 min bars, or is this primarily a day/week pattern? Thanks for the help.
This thread is for the 5 point patterns not stock picks based on Darvas Boxes. Please take your advertising show down the road. Thanks! 322170
Is GLD's uptrend still intact?? I saw some others calling for a short in GLD. On smaller time frames this looks legitimate because we had a large move to the downside 16.87 points which is called overbalancing. You then can expect a move back up to the .618 to .786 retracement which is the 94 to 97 area where many will short this and all should be aware of this. However, on the larger time frame of the weekly chart this pullback is NOT an overbalancing. In the attached chart you can see that this 16.87 pullback is not larger than the pullback of 17.21 points on 6/16/2006, thus keeping the uptrend in place for now over the longer term. just something to keep in mind. i do not own any GLD and for those who want to exit at 94-97 would get no argument from me because it will get nasty at those levels. AS USUAL USE STOPS AND GOOD TRADING
for those who like predictive analysis....we are in the process of making a bearish butterfly pattern. If you are swing trading long the ES your first target is 1306at the 1.27 extension of XAD, second target 1315 at the 1.414 and 3rd target 1326 at the 1.618 extension. Be aware that all three areas are potential reversal areas based on Elliott wave and Geometry pattern theory. Also be aware that we first MUST get above the two tops, one which is right here at 1285 and the other at 1291.25. also be aware that most Elliott wavers highly regard the 1.27 as a strong reversal extension. One way to play this would be to take short poistions at each extension if the market goes there. Or wait and see if the market can hit the extreme at 1.618 and take it there. Please note that this is a 60minute chart. The AB swing took 2 days to complete. Tomorrow afternoon at 2PM-2:30 CST will be the second day for the CD leg. If we hit any of these extensions by that time tomorrow you will have symetry of time on your side. Hope this info is helpful....but as usual use stops and trade respectfully
"Also be aware that we first MUST get above the two tops, one which is right here at 1285 and the other at 1291.25." We could not stay above that 1291.25 double top area. This negates the butterfly completion attempt and another pattern needs to develop.
haven't posted in a while but this just caught my eye today as I was checking out Glaxo. We have completed a bearish gartley pattern at (near the .786 retracement. The potential for this pattern is to to take out the low at 32.00. If it trades above 40 then the pattern has failed. Strategy is to try try to get short on strength back up near the .618 to .786 if given the opportunity.
This is a 24hr chart of ES over the last couple of days. We have a bulish butterfly pattern which nicely meets the symetry of the pattern. In the XAB leg you want to see at least a 0.786 retracement. And the XAD leg completes at either 1.27 or 1.618 or somewhwere in between. This completed right on the 1.27 retracement (not extension). Another key element is that AB equals CD This can be a very strong reversal pattern that has already kicked off. If the pattern works we should take out point A and proceed higher.