Minimum 3C Upside Targets Hit

On Tuesday, January 6th I posted the following charts with the following commentary on them, all having to do with the 3C concept that essentially says, "If you were to buy or sell at the point in which you first saw a divergence develop, no matter how far price continued to travel away from that point, on the resulting move forecasted by the divergence, the position would be in the money as that is at least the minimum target prices will move to and that's what we have this morning thus far.

 "QQQ 3min positive, but judge the divegrence size compared to the negative that preceded it. Using the concept of "Price will move at least to the area the divergence was first seen, would mean we could expect a move in QQQ to at least $102.75."

The Q's just passed $102.81.


"The same is almost exactly true of the IWM and it's minimum bounce target would be $118.20."

The IWM just hit $118.44

At this point, the minimum target has been met. This doesn't mean a reversal to the downside is imminent, it just means this is the minimum target area I would expect to see filled and it is a useful concept in making decisions about Risk:Reward ratios in Risk management, at least you have a minimum target to decide whether the ratio is favorable for a trade.