THIS IS WHAT I CALL A REVERSAL TRIANGLE FORMATION, INSTEAD OF REGULAR TRIANGLES WHICH ARE A CONTINUATION PATTERN, I USE THE DIAGONAL LINE AS A DESCENDING RESISTANCE , SO ONCE THE PRICE TOUCHES THIS RESISTANCE USING CANDLESTICKS AND OTHER INDICATORS I CAN DETERMINE A CHANGE IN THE PREVIOUS TREND.
US leading company: FedEX will make its top-out Formation after
this coming wave C-sub-4 correction (down to 113.71 ).
The top-out area will be 146.29---150.25 ( as Major-C = Major-A ).
Then it will be plunging into a total Fib. 38.2% correction area: 92.39
because of volume divergence.
Therefore short term view is SHORT, and mid term view is LONG and
long term...
Trading the Pair which has moved from its correlation can be done based on analyzing the prices of the stock pairs and using the cointegration strategy charts of the pairs. The trader should look for pairs that have moved away from each other and preferably, a pair in which the stocks have moved away from each other and then back together in a regular pattern....
