And what I meant by that was not retire as in not doing anything, retiring to me means having the freedom to do whatever you want without having to worry about income. That is where I refinance my loan with a big smile on my face :) Btw I mentioned that if my emerging market guess was accurate that I would "retire". This in turn encourages consumer spending, investing, etc. With rates like these, people can borrow or refinance and and basically pay 0% interest (when accounting for inflation). That and the fact that mortgage rates on a 30 year fixed loan are now BELOW the historical rate on inflation for the United States, which is financial history in the making. so I guess you could say I am letting my instinct run on this one instead of my mechanical TA trade.Īnd considering what I posted on Friday, odds do favor the bullish side. ![]() I'll re-evaluate the hedge depending on how the W3 low gets taken out (if at all). And in light of this, I decided to let me hedge stop out at break even (these VXX are extremely volatile and not good to hold for more than a few days) despite having a close under the trend average and a good probability of some more downside. So odds are now starting to favor a continued run towards 1500's. At the same time, we can also see the Ascending Broadening Wedge marked as W4 and although the bearish target is the W3 low (essentially favoring W5 truncation), this pattern usually appears in bull markets. And at the same time the traditional 5 wave count I was posting was essentially invalidated so instead the market has an expanding diagonal form targeting a bit more downside. In a Wedge chart pattern, two trend lines converge.The market managed to breach the trend average today but it could not sustain that level. ![]() I’ve taken a line from the swing and connected a parallel of that line to the downside break of the upsloping trend line to demonstrate the measured move. Appears a group of three white candlesticks with the first two white candlesticks possessing long real bodies whereas the third white candlestick possesses a small a real body. The broadening wedge has always been a bit of a mystery to me. Wedges signal a pause in the current trend. The sweet spot remained in play throughout the pullback because it did not violate the $1,300 lateral. It means that the magnitude of price movement within the Wedge pattern is decreasing. Parameters: Alerts - show alert when an arrow appears Push - send a push notification when an arrow appears (requires configuration in the terminal) PeriodBars - indicator period K - an additional parameter that influences the accuracy of pattern shape recognition. The main characteristics of this pattern is that price movement becomes more and more volatile with a series of up-and-down high-waves. ![]() The structure can form sideways without a clear directional bias or in an ascending or descending fashion. The last Fibonacci retrace level at 78.6% near the $1,326 high marked the beginning of a Descending Broadening Wedge, which formed a base at $1,303 without violating the Rectangle Top’s topside lateral $1,300 breakout. I hit a nice target for a +4% gain from the FTSE trading strategy. While it can be quite a profitable pattern, it has a tendency to play tricks on us traders if we’re not careful. The S&P 500 index is in a Descending Broadening Wedge formation (see here) confined by two down-slopping diverging trend lines. That trail becomes whats called a chart pattern. Unlike its inverse, the narrowing wedge, the broadening wedge “fans out” from left to right. ![]() The second candlestick must close higher than the first candlestick and usually the third candlestick closes higher than the second candlestick, but not that far from… The broadening wedge pattern is similar to the upward and downward sloping flags in that it represents exhaustion by either buyers or sellers. The markets bestselling and most comprehensive reference on chart patterns, backed by statistics and decades of experience When the smart money trades the securities markets, they leave behind financial footprints. Combine enough footprints together and you have a trail to follow. So the DAX Targets 13,900 after reaching downside measured moved. An indicator of patterns #50 and #51 ("Triple Bottoms", "Triple Tops") from Encyclopedia of Chart Patterns by Thomas N.
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