If the S&P breaks out of its triangle-type pattern and its Oct. 14 high (1044), what would the projected target be? I'm not a strict chart pattern trader, but I know there are ways to calculate relatively high-probability target areas. Thanks in advance.
Throw away the charts. The recovery will be v shaped. Dow 14,000 within 15 months. Just go long and do nothing for the next year.
Oh, and I almost added the following paragraph to my post (which I'm now doing): Please, refrain from any permabull/permabear opinions, fundamentals, conspiracy theories, etc. I'm just interested in a textbook approach to find a target. Thank you.
If you want actual "technical analysis" information on the markets, it is rarely found in the Trading Forum.
Very true...and sad. There is a place (and forums here) for the rest of the stuff, but it's too bad the "Trading" forum has so little relevant content.
For a simple target take 1044.31 - 839.80 = 204.51 pts. Add 204.51 to the level of the breakout of around 930. 204.51 +930 = 1134.51 area. hope that helps ya!
1) It takes time and effort to properly learn the "mumbo jumbo" and find out what really works. 2) It takes discipline and guts to trade it with proper money management. 3) Given the above, it's still not a get-rich-overnight scheme. Those three caveats eliminate 98% of the folks here and elsewhere from the would-be successful. FWIW, as I said earlier, I'm not a strict chart pattern trader, but some (Thomas Bulwoski-sp?) come to mind as being successful.
I posted this to TA forum. Then I tried to delete that thread since people are already replying to this one...but I can't delete it for whatever reason. Please respond to this thread (in "Trading" forum) if you have comments.
Also that 1134 area represents a .618 fib retracement from the Aug 11 high and Oct 10 low. .618 retracement come in around the 1132 area.