Posted by limitless on 16th of May 2013 at 04:08 pm
Thanks. I was looking for a break to the upside as you have
mentioned that triangles mostly break out in the direction of the
trend! Did I misunderstand? Thanks
limitless - what you state is true but in this case the pattern
that formed was not a so called proper triangle (off the highs)
with the lower line too steep (wave C should be deeper). Somewhat
complicated to explain here. Within proper triangles the waves
usually move approximately 78% of the previous wave. The first leg
down wave A was nearly 11 points then a wave B bounce of
nearly 10 points (1650.88-1660.51) then less than a 5 point
pullback (1660.51-1656.86) which is too short for a proper wave
C.
The lower trendline was compromised for a trigger down after
failing to make higher high around 2:00 PM EST.
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Thanks. I was looking for
$SPX - Chart Link - hit its initial measured move ...
Posted by limitless on 16th of May 2013 at 04:08 pm
Thanks. I was looking for a break to the upside as you have mentioned that triangles mostly break out in the direction of the trend! Did I misunderstand? Thanks
limitless - what you state
Posted by steve on 16th of May 2013 at 04:12 pm
limitless - what you state is true but in this case the pattern that formed was not a so called proper triangle (off the highs) with the lower line too steep (wave C should be deeper). Somewhat complicated to explain here. Within proper triangles the waves usually move approximately 78% of the previous wave. The first leg down wave A was nearly 11 points then a wave B bounce of nearly 10 points (1650.88-1660.51) then less than a 5 point pullback (1660.51-1656.86) which is too short for a proper wave C.
The lower trendline was compromised for a trigger down after failing to make higher high around 2:00 PM EST.