Some more 1.272 Expansions on the NQ today:
As you may know, I am fond of using 1.272 expansions as price targets on the Nasdaq. Today, I spotted three of them , each in a different timeframe, that gave at least small pivots in price when they were hit. Check this chart:
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The smallest pattern, labeled 1-2-3, marked the morning lows precisely. After the initial low was made at around 9:50AM, a bounce back up to near the morning highs failed right at the 20sma5. The ensuing selloff took out the previous low and made a perfect 1.272 expansion at 1378.5. From there, the market rallied into the highs of the day.
The next pattern, labeled abc, measures a 1.272 expansion of this run to the highs and its subsequent breakdown. This measured to 1371. Precisely at 1371, there was a pause for two bars and a bounce of 4-5 points. This was the only pause in what was an otherwise relentless selloff once the morning lows were broken. Due to the ferocity of this intraday trend, the 1.272 had a very weak influence in stemming the tide, but is noticeable nonetheless.
The largest pattern , labeled ABC, marks the 1.272 expansion from yesterday's low to high, carried over to today's close. This expansion measured to 1351 (which also corresponded with the 2.00 expansion of the ab rally.) Notice that the selloff late in the day halted abruptly at this level and rallied about 12 points, before revisiting this area at 4PM, effectively marking the low of the day (discounting some slop over in the 4:00-4:15 light volume period, which has since been negated in the night session.)
I used each of these 1.272 expansions as profit targets for shorts today, getting out about 2 points above them each of the three times. While this clearly left money on the table, especially with the second, abc pattern, you can see that this was an effective method for covering near the lows in the other two cases.
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