I hope you can see this a/\.m.'s bearflag. As traditional T.A. takes it, a decline of the magnitude we saw this am, needs to correct, thus the flag, the flag pole is the decline (it looks like an upside down flag-pole and flag). This is conventional T.A.'s century long understanding of the pattern, so most bulls are not happy to see it, we know that the failure rate for technical patterns, at least temporarily is probably higher then 75%, so a false breakout to the upside to run stops is highly likely. If we don't see that, it would be a very bearish development as Wall Street will have shifted their tactics to confirm bull's fears. However, I wouldn't read too much into a false b/o as it's really a market maker thing to make extra money.
It's too early to use short 3C with that straight fall down and now a consolidation, it needs to compare relative points so far back and with a straight decline down, it's hard to do that.
2 comments:
It is helpful to put all the known information on the table, and to determine which conclusions fit all the data and which do not. In this manner, you can eliminate most possibilities, and discover through the process of deduction which scenarios remain. Of course, you should have a detailed plan of action even if the least-likely scenarios actually develop. While you can never know what the future will bring, you can always be fully prepared as to how you will deal with any possible contingency.
Could not have said it better.
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