Posted by pimacanyon on 13th of Dec 2013 at 02:25 pm
downtrend from the 9th to the 12th had 3 counter-trend moves
prior to the low on the 12. The move up on the 12th from that
low clearly broke symmetry. So that tells us that that
downtrend has ended, right? And now we should look for a
higher low, right?
The first higher low was actually a double bottom. We now
have what's very close to a triple bottom (if it holds) and
possibly a higher low.
If it breaks lower, then the downtrend has NOT ended, so what
happened to the symmetry break?
Pimacanyon...a symmetry break points to the IMMEDIATE trend over
(price has since moved sideways) and a higher low. The SPX did make
a higher low today followed by a weak rally. A symmetry break
DOES NOT always lead to a change in trend. Please understand this
point. Further, there is no clear reversal pattern that has yet to
occur on the larger time frames. To be clear, the trend down from
1811 to 1772 completed and this can be followed by a bounce/rally
that sometimes only leads to sideways movement (forms a larger
continuation pattern).
Posted by pimacanyon on 13th of Dec 2013 at 02:43 pm
Today's low was a double bottom, not a higher low. Now we
have a triple bottom (maybe).
We DID have a reversal pattern on the same timeframe as the symm
break, right? Falling wedge. If we just stick to that
timeframe, we should see a reversal on that timeframe, right?
Can we not apply the tutorial principles on that timeframe?
Maybe it will come, depends on whether the triple bottom
holds. Triple bottoms do occur, but they are not that common,
so odds are we'll see a break to the downside.
Pimacanyon...symmetry breaks typically produce higher lows but a
double bottom is also an outcome when the initial rally is
relatively weak. By the way, 1772.45 is higher that 1772.20 prior
low (thus a higher low). I don't see a valid falling wedge
with 3 touches on the bottom. The PATTERN that has now formed
is a DESCENDING TRIANGLE. Should you have any further
questions, please contact me via email and I would be happy to
answer such questions.
Greg - as I stated in email that was NOT a valid falling wedge.
Please google valid wedge as you must see 5 points not 3 and check
your notes as I specifically explained this exact situation in the
tutorial.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
SPX 5
Posted by steve on 13th of Dec 2013 at 02:16 pm
$SPX - Chart Link
SPX show term grind up and now dropping after breaking trendline..
symmetry broken on SPX downtrend (15 min chart), but where is the change in trend?
Posted by pimacanyon on 13th of Dec 2013 at 02:25 pm
downtrend from the 9th to the 12th had 3 counter-trend moves prior to the low on the 12. The move up on the 12th from that low clearly broke symmetry. So that tells us that that downtrend has ended, right? And now we should look for a higher low, right?
The first higher low was actually a double bottom. We now have what's very close to a triple bottom (if it holds) and possibly a higher low.
If it breaks lower, then the downtrend has NOT ended, so what happened to the symmetry break?
Pimacanyon...a symmetry break points to
Posted by steve on 13th of Dec 2013 at 02:35 pm
Pimacanyon...a symmetry break points to the IMMEDIATE trend over (price has since moved sideways) and a higher low. The SPX did make a higher low today followed by a weak rally. A symmetry break DOES NOT always lead to a change in trend. Please understand this point. Further, there is no clear reversal pattern that has yet to occur on the larger time frames. To be clear, the trend down from 1811 to 1772 completed and this can be followed by a bounce/rally that sometimes only leads to sideways movement (forms a larger continuation pattern).
symm break--where's the higher low?
Posted by pimacanyon on 13th of Dec 2013 at 02:43 pm
Today's low was a double bottom, not a higher low. Now we have a triple bottom (maybe).
We DID have a reversal pattern on the same timeframe as the symm break, right? Falling wedge. If we just stick to that timeframe, we should see a reversal on that timeframe, right? Can we not apply the tutorial principles on that timeframe?
Maybe it will come, depends on whether the triple bottom holds. Triple bottoms do occur, but they are not that common, so odds are we'll see a break to the downside.
Pimacanyon...symmetry breaks typically produce higher
Posted by steve on 13th of Dec 2013 at 02:46 pm
Pimacanyon...symmetry breaks typically produce higher lows but a double bottom is also an outcome when the initial rally is relatively weak. By the way, 1772.45 is higher that 1772.20 prior low (thus a higher low). I don't see a valid falling wedge with 3 touches on the bottom. The PATTERN that has now formed is a DESCENDING TRIANGLE. Should you have any further questions, please contact me via email and I would be happy to answer such questions.
falling wedge
Posted by pimacanyon on 13th of Dec 2013 at 03:19 pm
the 15 min chart had a falling wedge prior to the first low it put in at 12:15 PM Eastern Time on 12/12/13
Greg - as I stated
Posted by steve on 13th of Dec 2013 at 03:25 pm
Greg - as I stated in email that was NOT a valid falling wedge. Please google valid wedge as you must see 5 points not 3 and check your notes as I specifically explained this exact situation in the tutorial.