Here are the same patterns on the NQ today. Anybody wanna be a huckleberry and extrapolate them for us?
I greatly fear Nobody would come look! These might be a "huckleberry over my persimmon?" Could you, or anybody, extrapolate the NQ with same patterns?
Ok no extrapolaters. Guess i will have to attempt to extrapolate the compound patterns. Then i gotta things to do so i will go bye bye to a great sound of applause from all ETR's. Ok. All bull channels should be thought of as bear flags. Bear flags have about a 68% chance of being successful. That means price in a successful bear flag will break south of the lower trendline and continue south a significant amount ..at least enough to make some decent money depending on the size of the flag and TF...so.... based upon the larger bear flag surf may wanna get some bottles of the good the high dollar wine out for a celebration. The contracting triangle is a B.O. "Modus operandi" pattern. It can break out in either direction. Will probally come back to test the apex and that will be the decision point. If it breaks out north then comes back and tests the apex and heads north again the name of the game is long as it is a continuation pattern. It would be good at least for scalping until it breaks top of flag then a longer ride long. In such a case surf would need to break out the cheap beer bottles and store the high dollar wine as the flag pattern will probally be a failure. If it heads south from the contracting triangle then the name of the game is short for scalping and once it breaks south of the lower flag line price would fit the bear flag modus operandi. If the shoe fits wear it. If the B.O. of the contracting triangle is south and it comes back to test the apex then that is the key point. If it heads north after the apex test then the bear flag will probally be a failed bear flag and we have a long opportunity. If it heads south after the apex test then it has become a continuation pattern and fits the shoe of the bear flag so i would put the shoe on and go short. The big complication in the whole ruckus is the expanding triangle. The contracting triangle is nested within the expanding. Price could just meander back and forth for hours within the walls and confines of the expanding triangle. So we are caught in a quagmire of market uncertainty. The easiest solution is this: do nothing except scalp up and down UNTIL price breaks either north of the bear flag channel top line. In such a case i would go long AFTER a successful Pb of the B.o. "Holds" and price continues north. By "holds" i mean does not go back into the channel any or if it does ....just a tiny tad bit. Such is the life of a discretionary trader operating in the sea of uncertainty. If it breaks south out of the lower bear flag channel line, then after a successful pb, (one that price doesn't get sucked back into the channel) i would short. Bottom line scalping is allowed in the expanding triangle and contracting triangle patterns. However once they confirm the larger bear flag pattern then i would want to be on board for the larger trend up or down. Probabilities favor surf drinking high dollar wine today. That is, the flag will succeed and price will head south out of the flag. But there does exist a 32% chance he will have to settle for the cheaper beer if that bear flag fails and price heads north. If it fails I, "sure as rice is white" wanna be on board because that failure should be a good one. Now that i have confused everyone I will go do something worthwhile and remodel the house. You can save your applause for later. PS if no b.o. Of flag north or south then we are stuck in scalping this session.
Great i like it when expectations work out! When did you expect it? More importantly, "why" did you expect it and "how" did you expect it.
If price breaks south of flag with great gusto and a great swooshing sound i don't wait for p.b. to short. If begrudingly then i wait for pb that doesn't get sucked back up into bear flag/bull channel ROFLMAO. Back to remodeling....will check back later either to applause or "tar and feather" and run out of town.
The Price Drivers signaled that the top was in and something unusual was starting to occur -- combining top in and the start of unusual activity led to the conclusion that price was going down-- so we put out the SELL now call and sold our shares. surf