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Wedgepennet

Dow Likely Entering Bear Market: Broadening Top; Bear Flag Ominous portents. Broadening top in September led to the microcrash in October and US Equities have been struggling since. November usually one of the best months for stocks, has only been a down month in 3 years of past 20; those were in Bear Markets... Some very fine textbook chart formations appearing over past few months. The Zig-Zag Correction has led to what appears to be the end of the Great Bull. Fed will hike again next month and if they hike twice more we will get a recession starting in 2019. Earnings have already passed their halcyon days, look at Apple and NVidia, IBM and many other issues already entering bear markets. The power to drive this market to new heights has leaked out of the balloon, I'm afraid. Spent a weekend reading Murphy's Technical Analysis of Financial Markets, Chapter 6: Continuation Patterns is a lovely read, quoted for your reading pleasure: "The Broadening Formation is an unusual variation of the triangle and is relatively rare.... looks like an expanding triangle... also called a 'Megaphone Top.' In other triangular patterns, the volume tends to diminish as the swings grow narrower; in the broadening formation, volume tends to expand along with wider price swings. This situation represents a market that is out of control and unusually emotional. Because this pattern also represents an unusual amount of public participation, it most often occurs at major market tops. The expanding pattern, therefore, is usually a bearish formation. It generally appears near the end of a major bull market." -Murphy, 1999 Revised Ed., pages 140-141. "The flag and pennant represent brief pauses in a dynamic market move. One requirement... is they be preceded by a sharp, almost straight-line move. They represent pauses in which that market 'catches its breath' before running off in the same direction. Flags and pennants are among the most reliable continuation patterns and only rarely produce a trend reversal. ...Flags and pennants are said to 'fly at half-mast' from a 'flagpole,' as they appear at the midpoint of a major move. Pennants and flags on downtrends are completed very quickly, often in only 1-2 weeks, after which the breaking of the lower trendline in the pennant signals the resumption of the downtrend. The break down will take place on heavy volume, and the magnitude of the move is estimated by measuring the vertical distance of the preceding move from the breakout point of the pennant . Flags are small parallelograms that slope against the prevailing trend. Pennants resemble small horizontal symmetrical triangles." -Murphy, 1999 Revised Ed., pages 141-145. Well, this flag started flying on 14 Nov, I reckon it might snap off after the holiday week, maybe sooner, who knows? Expect it to fly a bit higher, to form a right shoulder which might be expected to occur around 25600 on Dow. We saw 25500 very briefly Friday on Trumptweet, another such tweet could top off the flag. Good luck! As always this is an educational post for your amusement and does not constitute investment advice; trade at your own risk!
DJ:DJI
by DaddySawbucks
11
BTCUSD 3 DRIVES PATTERN FIBS MATCH UP TAKE A LOOKBTC chart within the downward wedge has been making a bullish 3 drives pattern, but I will say it also made one with the last hump I will put link below. So it seems to be moving within this Wedge pattern since January the fibs line up about 68% extension on the tops and 1.2 on the bottoms its textbook now we just need it to hit the bottom of the wedge at $5500 and fire up to 10K usd so lets see what happens happy trading everyone. This is not financial advice it my opinion. Do your own research and analysis and make your own decisions.
by bdfulker2
Bitcoin Long Term Plan - two scenarios After receiving mass hype and exposure, bitcoin topped off at $20000, the same day bitcoin futures starting trading. Since then, bitcoin has been consolidating and forming a massive wedge. Completion of this wedge will indicate which way we can expect price action to swing. Volume has been on a slow and steady decline. The Kujin and 300-day moving average are acting as a strong support. Also, visible range shows that we are in the thick, which means a majority of orders were taken within this range, which means that this area is both the strongest support and biggest resistance. Worst case scenario we complete this wedge and break down to our strongest support at $5000. Best case scenario, we enter a post-consensus bull market and bitcoin breaks right through the wedge and confirms an upward price action. We would then look at our three biggest resistances which are the 200-day moving average, top of the cloud, and the $11750 area. I would expect some struggles around this area but a break above would take us straight to $20000. Other possible scenario, we complete this wedge and slowly form an uptrend. We would then have some liquidation battles at the big resistance and would ultimately watch the move from here. It is best to plan out your trading and all of the possible scenarios that can occur. I personally expect the most bullish scenario to happen, a post-consensus run straight to $20000 while alts moon. However if that doesn't happen, I am still prepared.
BITFINEX:BTCUSD
by UnknownUnicorn2999322