Everyone needs to be mindful that long term investors see this exact same pattern which is what makes it so effective to trade. In terms of probability, price is likely to be contained within these two lines until the market breaks out of this pattern. If it does, overbought becomes oversold. For instance, if NASDAQ breaks out of the top of this pattern and holds, then the price is no longer overbought, it becomes oversold and may never visit this structure again. In other words, the top of this pattern becomes the new bottom (support). The opposite is true if price breaks and holds the bottom of the pattern, although less likely as Nasdaq pretty much only goes up when looking at the monthly chart. I would buy with both hands if the price reaches the bottom again, but it may never reach it again if the price breaks out of the top of the pattern and holds.
Today, Nasdaq has tested the previous all time high which made it an amazing point of entry for longs. If this holds, we may see the price test the upper and/or break above it and hold. If this new high doesn't hold, we may see price revisit the bottom , although it's hard to fathom the fed letting this happen seeing as how they're willing to do everything they can to keep the trend upwards.
As a side note, I believe everyone needs to quit with their bias. I have been reading multiple forums, reddit, and tradingview chat and I cannot believe how many people's minds are clouded by their emotions / feelings on which way the market should go. Some people refuse to buy any point of this rally, even with a stop loss, out of principle and strong belief that the market is manipulated. Yes the market is manipulated, and it always has been, and it's likely more manipulated now more than ever, and in 10 more years, according to the trend it will be even more manipulated than it is today. However, are you willing to lose money to protect your ego? Do you put your ego ahead of those you provide for? We're traders, not psychics, no one knows with any certainty which way the market is going, we can only think in terms of probabilities and set our targets and stop losses accordingly. We should never trade based on what we think SHOULD be fair. Life is not fair, nothing is fair, and for those of us who have not dealt with that reality, it's never to late to deal with it and trade what's in front of us.
If you suffer from a strong bias, it's time to quit reading the news and to make yourself a big reminder that you only need to trade the chart, and that means trading with the trend WITH a stop loss.
How do I see the trend? , obviously, but with a defined ceiling and floor of a pattern that is facing upwards - this is what is in front of me. This ceiling and floor will continue to define the the trend until price breaks out of it.
To those of you who cannot break a bias that keeps you from effectively trading the chart, it might be best to trade something you absolutely know nothing about and don't care about. Doing this will help you trade the chart, not your emotions or bias.
If this helped you in any way, please upvote and follow. This will encourage me to create similar ideas.
I agree, it's a scam. Scammy scam scam. I'll scream this into my pillow and take some pills to deal with my PTSD. Doesn't matter how I feel, I'm wrong half the time anyway and I'm not afraid to admit it. That's why risk reward is so important. I think most people are wrong half the time as well but their ego stops them from realizing this. Trade the chart and probabilities where risk:reward is in your favor regardless of your opinion!
However, I don't need to bet on this opinion, I can continue to trade what I see on the chart and make money both ways. Unless you're shorting the top of this pattern with a large stop loss, staying short while you see with your own two eyes bullish price action is a disservice to yourself and those you provide for.
The reason America was the world power both geopolitically and financially is because the government was unified for the most part and the people had morals and they were patriotic. Today? You have THE greatest division in government and majority of Americans hate the flag, hate America, hate freedom. The world sees it, America is literally on its last leg. It’s over. This empire like all empires has collapsed. Nothing the Fed can do to stop it, in fact, they like all central banks are the sole propagators of this global collapse.