The bump and run formation is something that is usually looked for with a lead in of six to eight weeks and not six to eight years, but as I charted silver futures against the NASDAQ I saw what was there. This post is long silver against everything, especially the NASDAQ
The Bump and Run Top is one of the preeminent charts for understanding blow off tops and the subsequent hang over when the part is over. If you are looking at an asset that is prone to blow off it's top this is what you should be looking for. Likewise if something has a V Shaped bottom there is probably a Bump and Run Bottom in there. Be careful, you calculate the target via different methods and my first couple of times charting BARR tops I got it wrong. As always, Bulkowski wrote the definitive book on this chart pattern.
thepatternsite.com/barrt.html
Often you don't get full Lead In Height performance on the Bump and Run but here it appears we came damn close. Further, the Average True Range appears to have hit its galactic bottom but the price action has set a higher high compared when the BARR top began. The ATR is commonly used to find potential reversal point when it hits multi-year low on weekly or monthly timeframes and so it seems we have set a higher high
Now since we set a higher high there is the chance that this bump and run formation has formed an Elliot 0, 1, and 2. If that is the case the typical next target would be 1.618 pr 2.618 of Wave 1, shown by the fib extension.
One of the main inspirations for this post was Mike Maloney from GoldSilver.Com and his you tube channel. He reminded his viewers recently that precious metals have V-Shaped tops and rounded bottoms and the stock market often has rounded tops and V-shaped bottoms. Most of y'all probably are already familiar with his work. I plan on doing a few more ideas in this series so please stay tuned. They will show up in the Linked Ideas shortly.
The Bump and Run Top is one of the preeminent charts for understanding blow off tops and the subsequent hang over when the part is over. If you are looking at an asset that is prone to blow off it's top this is what you should be looking for. Likewise if something has a V Shaped bottom there is probably a Bump and Run Bottom in there. Be careful, you calculate the target via different methods and my first couple of times charting BARR tops I got it wrong. As always, Bulkowski wrote the definitive book on this chart pattern.
thepatternsite.com/barrt.html
Often you don't get full Lead In Height performance on the Bump and Run but here it appears we came damn close. Further, the Average True Range appears to have hit its galactic bottom but the price action has set a higher high compared when the BARR top began. The ATR is commonly used to find potential reversal point when it hits multi-year low on weekly or monthly timeframes and so it seems we have set a higher high
Now since we set a higher high there is the chance that this bump and run formation has formed an Elliot 0, 1, and 2. If that is the case the typical next target would be 1.618 pr 2.618 of Wave 1, shown by the fib extension.
One of the main inspirations for this post was Mike Maloney from GoldSilver.Com and his you tube channel. He reminded his viewers recently that precious metals have V-Shaped tops and rounded bottoms and the stock market often has rounded tops and V-shaped bottoms. Most of y'all probably are already familiar with his work. I plan on doing a few more ideas in this series so please stay tuned. They will show up in the Linked Ideas shortly.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
