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Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (5725)	8/21/2002 8:03:02 PM
From: heehee1	Read Replies (1) \| Respond to of 11288

Hi Phoenix... How are you old friend? ;) <Bearish Three Drives, bearish gartley > Hmmm... Very interesting. I've never heard of those two patterns before. Could you post a link and/or explanation of these patterns? BTW, quite a thread you've got here.

To: the-phoenix who wrote (5725)	8/21/2002 10:29:23 PM
From: the-phoenix	Read Replies (3) \| Respond to of 11288

OK, Bearish Three Drives Pattern Today's price action in the Nasdaq 100 set up a rare and potentially powerful bearish reversal pattern known as the Bearish Three Drives pattern. Some of you may remember the bullish version of this pattern that I posted about last winter that marked a short term bottom in the NDX: Message 17031690 This pattern is characterized by three buying waves of equal magnitude, with specific and equal fibonacci retracements and expansions at each wave. It is a form of E-wave, I guess, in that it is a five wave pattern with the first and fifth waves of equal length. Here is the current pattern: ttrader.com The target completion point of the pattern is the 1.272 expansion of the CD leg which will be at 1044.9. Also notice that the DE leg would equal the XA leg length of 27.7 points at 1044.7. There is more: Such a pattern's reliability is greatly enhanced if it completes at a major fib retracement or projection in a larger timeframe. Well, it just so happens that 1045 is the exact .382 retracement in the Nasdaq 100 Index of the selloff from the May high to the August low: ttrader.com So, this relatively rare pattern in the 5 minute charts completes at the exact same point as a major daily retracement. Further, this is coinciding with the price action in the Potential Reversal Zone of the Bearish Gartley in the $COMPX, which I have posted about the last two nights. Let me just point out that the Bullish Three Drives that I identified back in February triggered a 100 point rally. A 100 point selloff from here certainly feels reasonable to me as that would coincide very nicely with the 20 day moving average support, which is a logical place for a first pullback to find support. Phoenix