QQQ ~ Three Pushes to High
Updated
A “three pushes to high” top often develops as a leading edge of a larger, longer topping formation. This scenario may be a reliable indicator of decreasing momentum.
The way it typically forms is as follows:
1. The first push creates a new high outside the upper band.
2. The second push makes a new high and touches the upper band
3. The third push makes a new high, but within the upper band.
~As we review the QQQ, it has made the 3 consecutive steps.
(This technical analysis was discovered by John Bollinger and was taken out from the Book "Bollinger on Bollinger Bands")
There is also a head & shoulders formation (in blue). If we make a measured move from the neckline to the head. It is about a 8.4% move. Placing that move (in a red arrow), takes us to the 200sma.
I will keep this post updated if any pattern has been negated or my views have changed.
The way it typically forms is as follows:
1. The first push creates a new high outside the upper band.
2. The second push makes a new high and touches the upper band
3. The third push makes a new high, but within the upper band.
~As we review the QQQ, it has made the 3 consecutive steps.
(This technical analysis was discovered by John Bollinger and was taken out from the Book "Bollinger on Bollinger Bands")
There is also a head & shoulders formation (in blue). If we make a measured move from the neckline to the head. It is about a 8.4% move. Placing that move (in a red arrow), takes us to the 200sma.
I will keep this post updated if any pattern has been negated or my views have changed.
Note
Yesterday (march 2nd) we had a market internal bearish signal called, the Hindenburg Omen. If you would like to read more about it; I recommend using the following link.
It is written by one of my technical trading teachers.
trade2win.com/articles/2012-teutonic-trouble
Note
According to InvestorBusinessDaily, yesterday (march 4th) marked the beginning of the correction; as a cluster of distribution days have been made.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.