Sure, wiggle patterns are just as rare and just as reliable... yes, we'll need a close above the first day's high, but I wouldn't take the trade quite yet... in fact it could also be a low risk short right here... the DOW actually gave a buy wiggle pattern of sorts today, but it didn't occur right at the lows of the move which makes it suspect to me at the moment but worth watching on Monday...
Since the completion of the wiggle is generally rare, the closer we get to the completion of a wiggle pattern, the less likely the pattern will actually occur... in other words, if the wiggle pattern is actually completed in only 5% of the possible early formations, then the closer to completion there becomes a 95% probability that the wiggle pattern will actually fail...
I wouldn't consider a pattern a wiggle until the entire pattern actually comes to full fruition... too often we might see a pattern that can be a convoluted wiggle pattern, or a pattern that may actually become one but not quite yet, but it's like hurricanes in the tropical waters of the Caribbean, we don't have a hurricane until it actually forms... I wouldn't take a trade on a possible wiggle being completed tomorrow... in fact, it may be considered a low risk trade to take a position in the opposite direction that the wiggle pattern is forming since the likelihood of the pattern completing itself is so low... a failed wiggle pattern usually means the market will resume its previous direction... in other words, a failed buy wiggle is a pretty reliable new short position.....
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GZ |
