Otherwise known as an h pattern.
And as it hasn't fully played out we don't know if it'll play out at all but usually these are continuation patterns when price falls into support of some form, bounces, and then falls back into the lows either knifing through, or stopping for a double bottom. Just like the lower case h, or "even a dead cat bounces if it falls from great enough heights." And no, i have no idea how or why this stuck.
But this is what it looks like we're printing today on all major indexes, besides DJI. Which does seem to have it's bear flag already starting to play out.
So after some weird price action overnight we did gap down by above 10 ES points and we immediately saw the bulls try and take momentum but were promptly put on their asses as the Q's starting selling off and eventually everyone else started following. This dip was relatively low volume and looked like a liquidity trap, and that's exactly what it was as the bulls stole the ball and eventually, on decent volume btw fought their way to the breakout area, in which the bears defended successfully. Double top played out but not that deeply and on low volume they went back for the breakout area, and retook it there for about 15-20 mins before giving it back up. False breakout of what was an ascending triangle within this wedge pattern. After that the bears were in the driver seat all the way to the uptrend line where we ended up breaking down with about 45 mins left.
And as it hasn't fully played out we don't know if it'll play out at all but usually these are continuation patterns when price falls into support of some form, bounces, and then falls back into the lows either knifing through, or stopping for a double bottom. Just like the lower case h, or "even a dead cat bounces if it falls from great enough heights." And no, i have no idea how or why this stuck.
But this is what it looks like we're printing today on all major indexes, besides DJI. Which does seem to have it's bear flag already starting to play out.
So after some weird price action overnight we did gap down by above 10 ES points and we immediately saw the bulls try and take momentum but were promptly put on their asses as the Q's starting selling off and eventually everyone else started following. This dip was relatively low volume and looked like a liquidity trap, and that's exactly what it was as the bulls stole the ball and eventually, on decent volume btw fought their way to the breakout area, in which the bears defended successfully. Double top played out but not that deeply and on low volume they went back for the breakout area, and retook it there for about 15-20 mins before giving it back up. False breakout of what was an ascending triangle within this wedge pattern. After that the bears were in the driver seat all the way to the uptrend line where we ended up breaking down with about 45 mins left.
