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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Vitas who wrote (15651)	4/7/1998 10:53:00 AM
From: Bull RidaH	Read Replies (9) \| Respond to of 94695

Hi Vitas, The diamond reversal pattern that produced the 1141 s&p futures target began at 1pm on 3/20, and finished on 4/1 at roughly 2:45 when the price traded up through 1113.75. You will need an intraday chart, preferrably on a 15 or 10 minute interval, to really see the pattern. A diamond starts as prices spread into a megaphone pattern on the left side, then narrow into a pennant on the right side. If you look for the starting megaphone on 3/20, and the completing pennant (or symmetrical triangle) on 4/1, you will be able to spot the reversal pattern. What really gives the chart the diamond look is the fact that when you draw these trend lines along the megaphone, and then into the pennant, a perfect diamond is created by the lines. It is probably the most reliable of any pattern I know of in producing harsh reversals that lead to a change of trend (in this case, the s-t trend). The long and medium term trend is of course still up. Diamonds are definitely a trader's best friend!! Best Wishes! David