« The crash site (downtrend end) is often near the price level of the launch site (uptrend start). » T. Bulkowski
Just to notice on the S&P 500 daily scale we've got a rare chart pattern : a diamond top.
In the case of a diamond top, the psychology of this pattern is characterized by the double indecision of symmetrical broadening. In fact, broadening highlights the increased volatility unable to sustain the upward trend in the long term. The bullish forces diminish and shares change hands to go from majority stockholders in the market to less informed stockholders. After a period of euphoria and the market enter in a period of uncertainty. This is materialized in significant oscillations of the course. The output of this chart pattern has a high probability (80%) to reverse down the last upward trend.
An example of Diamond Top on SPX500, 2007 pre-crash period :
An example of Diamond Top on SPX500, 2007 pre-crash period :
tst
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nice work that's some prediction you got right there. amazing click and play with 3 targets hit.
Mirandole
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Thank you tst !
I work hard to be able to give some more good ideas like this.
Best regards,
Julien
JPMorgains
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Wow what an epic call…kudos.
Mirandole
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It was a lucky trade indeed.
Thank you Morgains !
Regards
JPMorgains
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Hat tip!
greenplay
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Very nice chart. Reached all 3 targets in a very short time period. How do you see the next price pattern?
greenplay
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Is the downward correction of SPX500 yet over?
Mirandole
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Hi Greenplay !
Thank you for your comment. Is the downward correction over ? How do I see the next price pattern ? For now I really don't know. I may publish a chart if I do.
Best Regards,
Julien
greenplay
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Thank You very much Julien. I like your chart study. Will pay close attention in future :)