6 replies to this topic

[iloli way]

Rule 4: Fourth time at the same level.
Fourth time through a level of support or resistance is powerful and one should go with the direction of the professionals.

This morning two Hourly reversing candles could be the most important move for this market. If we break down below that turning point, then ES (SPX too) will violate the 'Rule of 4' on a month end topping formation which is very bearish. Meanwhile, the reversal could still hold through EOM to open up the door for a bullish 'Rule of 4' break out later. So, 3 more hours to go.



Also, this doesn't look like a 'Descending Triangle' to me. But even it is arguably, there are different schools in interpreting it. Can be bullish OR bearish depends on which market it's in. See- http://thepatternsit...Descending.html

[iloli way]

Daily chart as of now telling the same story.

[vitaminm]

http://www.themarket...tion-spy/108328

http://www.informedt...s-part-1-a.html





http://stockcharts.c...nding_triangle_

[colion]

FWIW, I've found on the daily and higher that a cluster of hits on the trendline tends to act as a single hit. Not always but often enough.

[iloli way]

There are instances when descending triangles form as reversal patterns at the end of an uptrend

vtm,

Thx for the popular resources. If everyone sees and believes it's bearish, then it's time to cover.

I use your second 'teaching video' to point out what could also happen next. (compare red pattern with my ES patterns)

Edited by iloli, 30 November 2010 - 03:46 PM.

[iloli way]

FWIW, I've found on the daily and higher that a cluster of hits on the trendline tends to act as a single hit. Not always but often enough.

Yes, that's also the hit count on Daily resistant TL: 3.

Edited by iloli, 30 November 2010 - 03:45 PM.

[iloli way]

FWIW, I've found on the daily and higher that a cluster of hits on the trendline tends to act as a single hit. Not always but often enough.

Yes, that's also the hit count on Daily resistant TL: 3.

One might ask why can't support line hit be counted as 3 also? Since today and yest can be one hit. Well, in that case just extend the support line left to Oct 20th and count as a hit. All included additional Daily prices and that day's low still fit for the same triangle pattern.