| | | There are so many variations of the same kind of pattern, but the "classic" 3 day buy wiggle (the sell wiggle is the reverse) is this...
Day one, after a well defined price decline, a nice reversal pattern suggesting a low may be in place...
Day two, a higher high and a higher low, and a lower close than day one...
Day three to complete the wiggle, a lower low than day two, but not lower that day one... also, a close above the high of day one...
ALL of these requirements MUST be met or it's not a wiggle pattern...
There are 5 day patterns, and then 7 day patterns with more complicated variations, BUT all the prerequisites must be met or the pattern is not there... but, once the pattern is completed, you can rely on it with better than a 85% likelihood that the market is going to follow through for at least several days with a big move...
The wiggle pattern shows tremendous confusion among the longs and short, both side are highly confused... in a buy wiggle, the longs win... in a sell wiggle, the shorts win...
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