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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Mario :-) who wrote (31681)	5/6/2012 10:48:07 AM
From: GROUND ZERO™	1 Recommendation Read Replies (2) \| Respond to of 218833

Hi Mario, you're very welcome, I was very glad to share that wiggle info, I find that pattern extremely reliable, but also very rare... no, I don't know of any books that would tell you about such a pattern, and I don't know of any other patterns that would give us such a high reliability of next day follow through... On those two cash markets you attached, actually, the chart I posted is the genuine classic example of a three day sell wiggle, but there are many variations of the same theme... interestingly enough, the fact that the futures market did complete the classic pattern and we also have a divergence between the futures market and the cash market is yet another chart variation of that wiggle... in other words, if the futures market rallied above the high of the second day as it did but the cash market did not, then it further confirms the likelihood of a follow through the following day... so, the fact that those two charts you linked did not have a higher high was itself also very negative for these markets and told us of additional weakness in those markets when compared to the futures chart, that divergence in the wiggle between the futures market and the cash is highly significant... There is some irony that you actually thought those two markets did not confirm the wiggle, but in fact they did further confirm the wiggle due to their divergence of the day's high vs. the futures market high of that same day... Many thanks for pointing out those two charts... the fact that I see that divergence between cash and futures is further evidence that these markets are more likely to continue lower from here... Excellent question, and many thanks for posting and participating, I appreciate it, I value your participation...<g> GZ