| | | WHAT IS A WIGGLE PATTERN?
A wiggle pattern takes 3 daily bars, but they could be 5, 7, or even 9 day bar patterns... for some reason, they're all odd numbers of bars for this pattern, although on a rare occasion we could see 4 bars, but only very rare...
Buy wiggle occur at the bottom of a selling phase, and sell wiggles occur at the top of a buying phase...
WHY ARE WIGGLE PATTERNS FORMED?
A wiggle pattern is formed on the bar chart when the buyers and sellers are confused over several days, this heightened confusion creates this particular pattern, and when completed it is at least 85% reliable... when completed, the losing side of this bull/bear battle capitulates and the market moves rapidly and a great distance over the next several days, at least...
For the classic 3 day bar pattern for a buy wiggle is as follows:
The first day is an outside key reversal...
The second day has a higher high and higher low with a lower close...
The third day has high which is higher than the first day and a low that is lower than the second day, and then also must close above and also near the high of the first day...
For a sell wiggle pattern, everything is reversed...
There are daily, weekly, and monthly patterns... and each wiggle pattern can have some variation without distorting the classic pattern...
Clear???
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