I see the moving average ribbons like a flag, they fly open and boldly either bearish or bullish when are full stacked one way or the other, or when the trend is at risk of changing they furl up and get twisted up. The weekly Madrid Moving Average Ribbon has begun to furl bearish but has not completed the bearish ordering of price action below the ribbon and the time frames ranked from fastest to slowest.
I continue to look for patterns when support has flipped to resistance and I think we have a workable patter with some variations here and there.
Price Action
From there the trend line acts differently for each scenario. The main thing being these moves appear to be taking longer from the first sell off to the dump, which leads me to suspect that government forces can get the economy limping along further with monetary and financial interventions.
Orange looks like a variation of a Bump and Run Bottom but drawn in reverse, with the lead in line going from support to resistance rather than resistance to support. The blue trendline is a hot mess drawn from the bodies but it is a lot more useful if drawn from the wicks. The purple trendline hasn't been revisited and I have this paranoid premonition that it may. Purple also had the most bullish outcome, so I am not sure we will see a repeat considering that under the black scenario we are currently getting rejected by the ribbon after clearly falling out the bottom.
All this leads me to believe that we will be rejected near the question mark. I am not going to show it here, but take the time to put this on the 1M or 3M timeframe. If you don't have them just adjust the bollinger band look back length and you will see that the price action can and does fall out the 2nd and even 3rd st. dev bollinger band,
I continue to look for patterns when support has flipped to resistance and I think we have a workable patter with some variations here and there.
Price Action
- Sells off at the The downward arrow but does not break through the ribbon
- Forms a Relative High
- falls through the ribbon setting a low at the upward arrow
- The upward and downward arrows set a multy-year trendline
- Rallys to the hammer
- Sets a lower low
From there the trend line acts differently for each scenario. The main thing being these moves appear to be taking longer from the first sell off to the dump, which leads me to suspect that government forces can get the economy limping along further with monetary and financial interventions.
Orange looks like a variation of a Bump and Run Bottom but drawn in reverse, with the lead in line going from support to resistance rather than resistance to support. The blue trendline is a hot mess drawn from the bodies but it is a lot more useful if drawn from the wicks. The purple trendline hasn't been revisited and I have this paranoid premonition that it may. Purple also had the most bullish outcome, so I am not sure we will see a repeat considering that under the black scenario we are currently getting rejected by the ribbon after clearly falling out the bottom.
All this leads me to believe that we will be rejected near the question mark. I am not going to show it here, but take the time to put this on the 1M or 3M timeframe. If you don't have them just adjust the bollinger band look back length and you will see that the price action can and does fall out the 2nd and even 3rd st. dev bollinger band,
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