8 replies to this topic

[U.F.O.]

They are different...Volume is the key. On QQQQ, the pattern since late April has usually been described here and elsewhere as an expanding or ascending triangle, which is not necessarily a termination pattern...by any means. The key to defining a "bull market" expanding triangle is "declining" volume as the rally progresses and buyers get satiated. At that time a pullback may lead ultimately to higher prices after the correction. Terminal broadening tops, on the other hand, show a somewhat large "increase" in volume from the preceeding price action. More frantic, erratic, frenetic buying that somewhat defies logic and usually (90% of the time) resolves in a termination of the bull market and change of direction. What we have now on QQQQ is a "moderate" increase in volume. I'm not convinced the bull is ready to die yet, but this pattern has early earmarks of a termination pattern. The key price levels to watch here are the most recent pullback lows and rally highs. A close outside either is a signal worth trading. (2 charts)

U.F.O.

[da_cheif]

when was the last time you saw a broadening top....

[U.F.O.]

Tonight...when I looked at QQQQ. U.F.O.

[da_cheif]

so this is the first time u ever saw one????

[U.F.O.]

Either post an opinion or go rain on someone else's parade. If I wanted to undergo a 3rd degree I'd call my mother-in-law. U.F.O.

[bobalou]

well chief ,again,,we are students,you should teach.......thx I'm w/ you ,U F O . THE VHF needs one more high,at the end of the mo. end of 1/4 ,or 1/2.window dressing .do the deals befor summer (trading) spank, the top pickers -shorts, one more time brake up, befor a brake down. whip it good.......

[da_cheif]

my questions are designed to get one to think......teaching is an art......i allways ask myself questions to get me to think.......no body taught me about the stock market.....cuz there wasnt anybody around to do it wut knew ********.......snort

[Vector]

that's a very good point chief we've been seeing bearish patterns all the way up. Time to whip out that card trick again to get your point across.

Edited by Vector, 22 June 2007 - 08:55 AM.

[U.F.O.]

cheif. There's a difference between a question and an attempted disembowelment. One chartist to another. U.F.O.