mnst Monster Worldwide completed a bullish butterfly on weekly chart . Retested point D this past week.
came across this bearish "bat" pattern named by Scott Carney (i want to give credit where it is due). No one can tell you exactly what you can expect once a pattern kicks off and each person must determine how they will exit a trade. ....i show this so we can see the potential
We all ask how long do you stay with a trade. Each person must make his own rules for Entry Exit and stop loss. Some pattern traders will stay with a trade until they either get stopped out or until a pattern develops in the opposite direction. this daily polymedica chart shows that these decisions are not that easy.
Peter Lynch says buy what you know....well if you know pianos then you may want to add Steinway musical instruments to your portfolio. I know nothing about pianos but i do know butterflys and Steinway symbol LVB has formed one......i am sounding like a cheesy news letter now, sorry
RMIX US Concrete. I am showing this to emphasive that this is not perfect and not all patterns do what you would like them to do, but a stop just under point D would result in a small loss
Hi Philly, I am on vacation and don't have access to Pessavanto's book so that is my disclaimer , but I thought that a long off point D should have D above X not below? Maybe that is problem with some of these longs, they are below X and the fib symetry is not correct? Just looking to add some useful discussion.
In the buttefly pattern point D is below point X. XAD is 1.27, 1.618. Also a pattern called the "crab" has point D below X at XAB 2.24, 3.618 fib ratios. The very famous Gartley pattern has point D above point X. Also, some folks use very exact fib ratios while I use a a fib range of all acceptable levels to trigger a pattern. It is up to each person to decide if the pattern is acceptable .
SMH SEMOCONDUCTOR HLDRS TRUST. iF YOUR SEMI STOCKS WERE ACTING POORLY, This could be why. Bearish butterfly pattern kicked off on 7/20/07 on weekly chart. A move back up from here could be setting up more short trades. It must trade and stay over 41.00 on the close to negate this bearishness Similar pattern on $SOX weekly Let me know if you want to see the $SOX CHART