I've been traveling the country the past few months visiting friends and family. The stock market was breaking new record highs. The sell zone was hit as indicated in previous posts. The yellow abc completed near the upper blue line by the 3009+ level... very nice. Then, the market made a sudden scary break to the downside with the Chinese Tariffs going into...
Been watching this stock since last year. although very volatile, it could provide a great buying opportunity down in the buy zone shown in green. If we can just finish up the 5 waves down in the C wave as shown. Just a bit lower please....!
Closer view here. Notice the black vertical line on the time scale. (FOMC minutes) let's see if we break more lows... if this is a wave 3 down , it could really stretch out as shown by the black trail. If this turns into a bigger correction in an abc form, we'll keep an eye on the little green wave 2 label. If price breaks higher than that, then no wave 3......
Looks like the black trail mentioned a few days ago may be in play here. (I have taken off the purple trail) I sold calls yesterday and bought puts in the afternoon when the uptrend broke the little channel for a wave 2 top (green label) Looks like we are in wave 3 (black) down. Lets see if it breaks some more lows to confirm. This could really stretch out. Long...
Zoomed in view of where we are. Please see part 1 and 2 for the targeted plays post moments ago. I am short term long towards the Gartley (green) pattern completion, but will soon be going short at the sell zone. The bigger play is down Please enjoy -Old fart
Here is the closer view of the potential Gartley pattern (green) that could mark the top of the bounce that we are in. As we can see the set up could be a great low risk area to set up new short positions. Although I am personally long right now, playing this bounce, my trade is a short time frame. The bigger play will be to the downside following the black...
It has been a while since I've published an update. The pattern still looks like we will see the market continue the big pull back. The target looks like the 41.4% retracement of the Dec-May rally, mentioned 3 weeks ago. We haven't reached anywhere near that level yet. In fact it only looks like we have completed a small 5 wave move to the downside. Today we can...
Closer view of where we are now. This 2 hour chart shows a possible completion of wave 4 (blue) today. If this ending diagonal (blue) pattern holds true, we may expect the finishing (pink) ABC move up towards the final wave 5 (blue). This would complete wave D (green) of the larger Expanding diagonal shown in Part 1, near the 3000+ zone. After that point is...
Could this be the bigger play? Could we be in an expanding diagonal? We are in wave D (green) now. We have seen the (yellow) A -B- and now finishing wave C. If so then today should mark the low for wave 4 (blue) in an ending diagonal pattern. This could provide another push up to 3000+ zone, before a massive drop down to (green) E.
We've been looking at the extreme complacency that traders have as shown by the VIX. Interesting ratios that seem to be turning points... will these ratios hold into the future? Interesting for sure. Please take a moment to look at all the information shown here. Notice what happened last year in the Jan -Feb 2018 sell off. See that spike high? Compare that Feb...
Here is the closer view of previous long term SNH chart. Lets see if we can get the RSI to reset on the bounce looking for wave 4 and make some money! We are looking for the rsi to diverge with higher lows and price to make lower lows... lets see what happens!
SNH - has been killed and "thrown away" recently as the earnings have disapointed, having a 50 cent loss on the most recent announcement. Last Friday the dividends were cut to only 15 cents a share! Most traders are thinking the good old days are gone now for this stock. I have followed this stock since April 2018 and have been delighted with the dividends. At...
This is disturbingly low! This means that we should be very careful about the recent highs in the market... due for a pullback soon... as VXXB begins to put in a bottom near the lower channel support line
Hmmm... just looking at the bigger pattern. Looks like it will soon have a pullback. A little more up should complete the smaller Crab pattern. This should top out the black wave 3. the pullback should chop us back down to the green buy line for wave 4 (black) Then another push up to complete the wave 5 of 3 (red label). When I see the topping area for the Crab...
Here is an very recent example of the Gartley pattern. I took both trades and it was very profitable! The short was played with puts and the long was played with calls. This simple pattern has a high probability of success. Notice that the textbook plan waited for the buy signal shown in green, not the short signal shown in red. The textbook example simply to the...
Now let's zoom in and learn about the Gartley Pattern. Notice that Harmonics are counted differently than Elliott waves. Harmonics uses the starting point as "X". We count pivot points as X-A-B-C-D.
We now can begin to see the patterns forming larger patterns' This can help us with projections of those elusive pivot points. Here we see how the smaller patterns can begin to build larger patterns for us. Even project possibilities into the future!
Simply, Harmonics is a tool set that helps us look for pivot point extremes in corrective waves. Let's start with some simple ideas and get a feel for where the harmonics can be found. I'll try to make lessons as time permits over the next few days. Please enjoy these charts.