OK, 2.5 hours later let's see how we did: We made it up to 959.83 (instead of 961, I am so sorry) So far we dropped 4 pts from that 3rd top, and my instinct tells me that this is the end of this rally. We shall see, nevertheless the pattern has already played out...
Because lower high doesn't express the idea of the doublebottom(top) failing and going lower(higher) making a 3rd bottom(top).
A small one this morning, but it signaled the LOD: Height: 3.5 points Failure: at 1.5 3rd bottom: 3.5 pts
Friday's dragon was nice. Is there any consistent target for the final move, or just use S/R? That day looked pretty easy to catch the whole move by adjusting stops and closing EOD. Monday looked like a good inverse dragon except F was 1.5 pts lower than expected. Today had a dragon (exclude overnight and start W from Monday's close). F was a little higher than expected, but 974.25-H(7.5) came within a 0.75 of the LOD. Would have been hard not to cut it though from 1230-1PM. Looks like we closed today with a potential inverse dragon on the horizon. T1=978.25, H=7,T2=977. I'll be looking for F=973.5 and T3=980.5. 4 days in a row??? :eek:
inverted dragon on ES from 1AM to 8:45AM. Looking good so far for a down move. Anyone else see it? It did go a little higher than expected to 986.75 (expected was +5.4 to 986).
Sorry guys, I didn't realize there were responses in this thread. The only dragon I saw yesterday was this: Should have gone 1 point higher to the SMA line (I put a dot there) to make it perfect. I will go and check what you guys are talking about, give me a little time... Edit: well, the dragon from Friday I posted it here, it is above your post, I think we are talking about the same. The 3rd bottom was around 11 am and that was the LOD.
OK I think this is what you mentioned, ES 15 min chart this morning: My math goes like this: 1st top: 982.5 2nd top 984.5 Height is 6.5 pts Failure at 980.5 Expected 3rd top 987, and we made it up to 986.75, pretty good...
nice catch Pekelo. I missed that. How do you set your target after the reversal target? Have you found the failure level or height to be consistent? Looks like H was the perfect target this time. Or do you simply base it on S/R?
Yes, it is fairly simple and I already explained this earlier: 3rd top = Failure point + Height of the pattern 1002 = 995 + 7 This morning's example was classic in this regard.