2B Trading PatternIn an uptrend, if a higher high is made but fails to carry through, and then prices drop below the previous high, then the trend is apt to reverse. The converse is true for down trends. This observation applies in any of the three trends; short-term, intermediate-term, or long-term.
A 2B on a minor high or low will usually occur within one day or less of the time the high or low is made. For 2B's on intermediate highs or lows preceding a correction, the new high or low point will usually break within three to five days. At major market turning points, long-term 2B's, the new high or low will usually break within seven to ten days. In the stock market, after the new high is made, the failure to carry forward usually occurs on low to normal volume, and the confirmation of a reversal occurs on higher volume.
The above can be found on the internet, just look up 2B chart pattern.
I would usually recommend your default as being, sell low, buy lower. & buy high, sell higher.
My next trading mantra would be that double bottoms are not Support, and double tops are not Resistance. They are where the stops are. And therefore a major target.
But every now and then the market does turn. After a period of impulsive moves, the market comes to rest and goes into a consolidation. It may make one last attempt at continuing the prevailing trend, only to find there are fewer market participants willing to push it on. This is when you look for 2B's
U-TURN
$USDHKD selllooks like 7.85 is a very important level.
with the US dollar being so strong I was expecting to break this level
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3to 4 weeks of down weeks leads to UPSIDE BLOW OFFWe are now down 4 weeks in QQQ A RARE EVENT OVERTHE LAST 5 YEARS !!!! I AM BULLISH
2 Turn Setup3 Entry point
1) Current price entry (Highest risk/reward)
2) Breakthrough up from neckline
3) Pullback from neckline
Breaking throughOur pair was able to gain a foothold below the level of 1.1630 and has good chances for further movement.
Yesterday, during the release of indices in the US, we observed a correction of quotations, and the downward movement continued. Stochastic is ready for a turn and already has an intersection, so we advise you to look for points to enter short positions. We expect the price to fall below the level of 1.1520 and update the annual lows.
DXY: Dollar Index About to turn back downDollar Index DXY Update
The dollar is still in a medium term downtrend and currently
making a small continuation pattern inside an inverted flag
before falling away again. It should halt here at 93.78 and at
very best as it reaches 93.99 and spikes into the upper
parallel controlling this little consolidation period for the
dollar. Gold becomes a buy at this point, looking to increase
long positions aggressively on a break below the lower small
parallel of the inverted flag. DXY should fall to 92.75 -92.62
range where will look to close out XAU longs, only going long
gold again once 92.62 breaks on DXY. Look to use the dollar
counter-rally as an opportunity to build gold longs, turning
aggressively bullish once that lower parallel gives way.
ADBE — Watch this GapIn the larger monthly frame ADBE was on an uptrend. I believe that this trend has turned.
ADBE may come back to fill in the gap here, and that might be a good opportunity to re-short.
EEM / SPY - update and deductions from timwest's ideasSome time after the original chart was posted by timwest:
CCI shows a diveregence now with this pair, and, although a gut feeling - something tells me that chances are we may see a trend change in future, and EEM will outperform the US market.
Another thing to add to this is also timwest's chart (one can never praise this chartist enough on the site) - the discrepancy and distance between EEM and SPY became so large, it feels as it has to narrow down. But it is only up to "you, the reader" to decide what he feels may happen
- On one side you have US markets with a huge run over 2013 and 2014, where we've been expecting a drop that never happens
- On the other, EEM that has been going lower and recently turned up a bit. (one can note some run-ups of such countries as Korea, Thailand, India, Brazil, Turkey and even Japan sits on the verge of braking up).
So again 2 scenarios -
1) EEM breaks lower, Spy remains in tact or goes higher
2) EEM breaks up, and SPy gets its sell-off and correction.
If this idea - - holds by years end, and so far it does - then scenario 2 is quite probable. But first this pair needs to overcome the 23 resistance level.
Must quote today's comment from Tim "We are nearing the end of the end of the end of all of the positive forces holding up the market."
And my deductions agree fully with him on " I think the trade will be "out of developed markets" and into "emerging markets" for the next year"
I must include timwest's ideas that altogether will show which scenario i am leaning to and i urge you to read his comment-update on the forecast chart
PS - dear Tim. Never think that your charts are useless - i try not to post much and distract you from doing research, but if you wish i would leave notes on charts i think are good ideas (on top of the stars and thumbs up). This chart and idea is wholly made from your ideas - but added a whole deal of confidence to my feelings of the market.
