I like this chart because in such a short period of time there are 3 really significant patterns that have formed.
The first one is an example of an Adam Adam double top (red circle). You can tell this because there are 2 very narrow peaks. This is bearish of course.
Then it transitioned to an Adam Even double top (green circle).
Which has since transitioned to a head and shoulders formation.
The expected move from the Adam Eve double top is around 36% on average, which we are fast approaching.
The expectation for tomorrow is about a -1% decline continuation.
I am mostly a math trader but I do enjoy my Bulkowski patterns xD.
Not advice, safe trades!
The first one is an example of an Adam Adam double top (red circle). You can tell this because there are 2 very narrow peaks. This is bearish of course.
Then it transitioned to an Adam Even double top (green circle).
Which has since transitioned to a head and shoulders formation.
The expected move from the Adam Eve double top is around 36% on average, which we are fast approaching.
The expectation for tomorrow is about a -1% decline continuation.
I am mostly a math trader but I do enjoy my Bulkowski patterns xD.
Not advice, safe trades!
Note
Should have shared this.
Like to take these teaching opportunities, I think chart patterns can work really well if you know what to look for!
Note
Provided a fantastic entry for that 1% decline expected!
Hope some of you caught it :-D
Note
Someone asked about the gap fill,
While my major target is based on the adam and eve double top, the head and shoulders breakdown, in bull markets, generally leads to an average decline of 22%, which would essentially be a gap fill.
Probably look to long there. Projections for tomorrow remain quite bearish on tsla with just over a -1% decline from opening price tomorrow. This should snag the Adam and Eve TP but will fall short of the H&S TP. Depending on how low it goes.
I would anticipate a bounce prior to seeing a gap fill, but not really sure as have not forecasted out anymore than 1 day and this idea was just based on chart patterns and not math models haha.
Safe trades everyone!
Trade closed: target reached
Adam and Eve target hit!
It has bounce from there.
RE: the Inverse head and shoulders target, I think its possible but I find that pattern specifically unreliable. After SPY refused to follow through on its, I just stop playing them, so out here.
Safe trades everyone!
Note
Looks like we are fufilling the head and shoulders pattern after all.
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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.
If you're looking for:
- Live Updates,
- Discord access,
- Access to my Proprietary Merlin Software,
- Access to premium indicators,
Consider joining my trade group at:
patreon.com/steversteves
- Live Updates,
- Discord access,
- Access to my Proprietary Merlin Software,
- Access to premium indicators,
Consider joining my trade group at:
patreon.com/steversteves
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.