The compound fulcrum is an extremely rare pattern. In fact, if a chartist diagnoses this pattern more than once every few years, then it is being over diagnosed.
One can make the case that the daily chart of Silver is forming a legitimate compound fulcrum. The pattern itself -- the compound fulcrum -- actually originates in point and figure charting, not in classical charting principles.
The compound fulcrum is always a bottom pattern --- never a top. It occurs when a market forms a complex H&S top pattern after a prolonged and extended decline.
The key levels for confirming a compound fulcrum bottom would be a decisive close above the exiting right shoulder high at 1740, then a decisive close above the high of the head at 1850. Should these events occur, I would then become at least 50/50 certain that the bear market from the 2011 high is complete.
The weekly chart below shows what I believe to be the most classic of compound fulcrums during my time as a trader. This was a 4+ year compound fulcrum in Copper that was completed in early 1979. Copper advanced to $1.48 during the ensuing bull trend. I caught this market in real time. The second chart is the actual P&F chart I was updating at the time -- yes, there was a time when traders maintained paper charts.
Btc chart showes this rare pattern again. we'll see what happen next !!
One can make the case that the daily chart of Silver is forming a legitimate compound fulcrum. The pattern itself -- the compound fulcrum -- actually originates in point and figure charting, not in classical charting principles.
The compound fulcrum is always a bottom pattern --- never a top. It occurs when a market forms a complex H&S top pattern after a prolonged and extended decline.
The key levels for confirming a compound fulcrum bottom would be a decisive close above the exiting right shoulder high at 1740, then a decisive close above the high of the head at 1850. Should these events occur, I would then become at least 50/50 certain that the bear market from the 2011 high is complete.
The weekly chart below shows what I believe to be the most classic of compound fulcrums during my time as a trader. This was a 4+ year compound fulcrum in Copper that was completed in early 1979. Copper advanced to $1.48 during the ensuing bull trend. I caught this market in real time. The second chart is the actual P&F chart I was updating at the time -- yes, there was a time when traders maintained paper charts.
Btc chart showes this rare pattern again. we'll see what happen next !!