5 replies to this topic

[ogm]

A/D has steadily detiriorated with the market. 60 min summations have just reversed down last night. Plenty of room to fall. Daily summation will end up with a fishhook today, unless we see a miracle rally by the close. And looking at the massacre in the oil sector, looks like this isn't over just yet.

Edited by ogm, 20 June 2007 - 01:49 PM.

[eminimee]

I'm stopped out at 36.75 but long again at 35.50....going with the gap fill or island bridge....lol.......33.75 takes me out....
http://www.tradingth...ad/eurod291.png

[fib_1618]

Daily summation will end up with a fishhook today

Actually, it's a ledge formation. The fishhook formed prior to the 400 point Dow decline.

And the best thing about ledges is that they proceed the final purging wave before an actual price bottom.

Fib

http://stockcharts.com/c-sc/sc?s=$NYAD&p=D&st=2006-06-01&i=p15908143654&a=68675440&r=2562.png

Edited by fib_1618, 20 June 2007 - 02:08 PM.

[ogm]

So we'll need one more day and lower low on summation to qualify it as a fishhook ? I think with the way internals acting today and the way 60 min summations are looking, we can master that.



And momentum not looking pretty either.

Edited by ogm, 20 June 2007 - 02:21 PM.

[Mr Dev]

I'm stopped out at 36.75 but long again at 35.50....going with the gap fill or island bridge....lol.......33.75 takes me out....
http://www.tradingth...ad/eurod291.png

Be patient,... and allow ALL recent GAPS to fill ...anything long anywhere before the RUT is done is likely ....premature draw down.

[fib_1618]

So we'll need one more day and lower low on summation to qualify it as a fishhook?

Not really. It's more of a visual thing. The fishhook looks like...a fishhook. These patterns appear when, in this case, the bulls attempt to take control from the bears after a period of internal market weakness (or consolidation/indecision), but they're either early in doing so - OR - there's a lack of follow through (due to being "overbought"), and this creates a pattern failure. This usually occurs during periods of churning, or congestion, in and of the price pattern sequence itself.

A ledge formation appears under the same kind of bull/bear relationship, but in this case, the bulls get overly hyper in their opinion that things had washed out, but there's still not a lot of money flow conviction to back them up. You will usually see ledges form after a deeply "oversold" readings on the MCO (which I call a "flag"), and from where sharp and short rallies take place to fill the void this created (usually made up of short covering) but it's only enough to bring the MCO back to around the zero line, and this forms the ledge. It's from this point that "ledges are made to fall off of", and all of the willing AND unwilling sellers capitulate, a new internal foundation (MCO/price divergence) is created to once again attempt to advance - but this time - from a level that is either balanced between buyers or sellers, or in many cases, everyone who wanted to sell has...and then we start all over again.

Fib