BRR pattern points to a true Santa rally for bonds. A rare chart pattern second in predictive power to only the famous head and shoulders is the Bump and Run Reversal (BRR) technical pattern.
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If it is so powerful, why is it so unheard of?
1) They are rare. But a recent BRR of very high consequence is the 2022 DXY chart.
2) They usually only occur on high time frames as they measure manias and blow off tops, or in the inverse, manic selling followed by a return to normal.
3) They are hard to chart
4) They give predictive power in terms of time, not in terms of a "measured move" of price, but in the other dimension time.
This chart shows a clear BRR reversal, 55 days in the manic up pattern, the "bump". 55 Days in the return to trend or "run". Which would create a 10 year US Treasury bond rally and likely a rally in risk on assets. Which lands us, perfectly, at yields dropping until Monday December 25th 2023.
Merry Christmas Traders!