This idea is based on an expanding pivot or ( megaphone ) pattern as the market is now showing signs of exhaustion at the upper parallel of the RED pitchfork. Together with a nice 5 alternate candle reversal pattern and an 89 bar fib count from pivot 3. I had my order in at 2066 which was the GAP price which I had a hunch would be filled. This entry opportunity has a tight stop and good risk/reward should it break to the downside. This week also co-insides with my weekly converging lines and similar weekly chart pattern which I believe is still in play ( see linked chart ).
Elliot Wavers: Although my ideas are based on A/R and median line theory based on the works of Alan Andrews not EW, and although I believe this potential high is an Expanding Pivot 5 ( replace pivot 3 with a 1 count ), I have re calibrated the pivot count to show what could be an EW corrective wave expanding symmetrical pattern, please note, I will stand corrected if I am wrong, and please provide feedback on your EW interpretations:) they are very welcome, however what it does show is that both methods can be used to pinpoint important turns in the market.
Note: The downward yellow pitchfork will come in play should we get the reversal as it will provide additional entry opportunities as prices meet the lines. It also provides good take profit targets.
Sincerely,
TIK
Comments
Timing_is_key
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1st target met nice profit 79p with a 3.17 R:R, snap back rally from red dotted median line, likely to test all time high and upper yellow parallel....other 2 positions moved to BE as per rule ie. 1st median line target met. take care...TIK
Timing_is_key
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Hello all, reacted perfectly with upper parallel ( took a while to work out which RED fork "Handle" the market was going to respond to ), 1st Median line on the daily looks promising, reacted perfectly with upper parallel and in line with my weekly chart....Let's see if the bears are here to PLAY:) Have a good weekend
millie
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Thanks for posting this. SPX touched the 1st Target ML. What is your take on reaching the 2nd Target?
Timing_is_key
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This is the second close below the upper median line ( re-adjusted to the higher high ). If it stays below the upper Median Line the probabilities for lower prices are high. See updated chart.
millie
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Today's action was near the lower parallel of the red pitchfork. What do you think about a bounce to the median for another all-time high?
Timing_is_key
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Don't you love the symmetry! Yes nice Pin at the lower parallel, Price tends to always find balance to the centre or ML in this case. There is no conviction to the upside yet, just a tight range and a rounding top
Downside Risk: High as the Bulls are on the wrong side of the pitchfork
Upside: The biggest hurdle on this bounce is the existing tops as it makes it's way to the ML....
This long sideways Basing range is usually a precursor to a breakout in price equaling the length of the base...will have to wait and see
julia17
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Hello, Timing is key. great job with 1st target!) What do u think where we can bounce from 1990?
Timing_is_key
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Hello Julia17, I don't normally trade Indicies so this chart work up was in line with my long range forecast of a major correction in all major Indicies. When this thing rolls over it will be very difficult to know where this will pull up except for the Major median line which is miles away at this point. If you look at my corresponding weekly chart you can see the volatility as it is hitting the upper parallel:) also being mirrored on this daily chart. Tks
julia17
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thank u for explanation)
Timing_is_key
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This thing is going to turn soon, and when it does it's going to be EPIC! My weekly forks on the DOW and the S&P are both on the Upper Parallels.