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To:the-phoenix who started this subject
From: the-phoenix Thursday, Feb 7, 2002 9:38 PM
View Replies (4) | Respond to of 331

An Exciting (and Rare) Bullish Setup
Today's closing selloff in the Nasdaq set up a rare and potentially powerful bullish reversal pattern known as the Bullish Three Drives pattern. This pattern is characterized by three selling waves of equal magnitude, with specific and equal fibonacci retracements and expansions at each wave. Here is a chart of this pattern as it has set up now:

http://www.webdesigns1.com/mycharts/display.php?p=1349&u=the...

I learned this pattern from the book"The Harmonic Trader" by Scott Carney, but have never seen one set up so beautifully in the NQs before. It is nearly perfect, and stands out like a sore thumb! Notice the symmetry of the size of the moves and retracements, in price and time!

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, today's close in the Nasdaq 100 Index was at the EXACT 50% retracement of the Q4 rally off the September lows to the December top:

http://www.webdesigns1.com/mycharts/display.php?p=1350&u=the...

This pattern, if valid, should trigger a reversal to the upside within a few points of the reversal zone of 1412 - 1416. The reversal could be significant - 100 points or more!

I am taking this trade now, having bought at 1416.5 at 4PM today. I will put a stop just under 1400 (even number support) and risk 16-18 points, but with a reward potential of at least 4-5 times that amount. Less aggressive traders could wait to make sure this reversal zone holds tomorrow, and still be long for most of the expected move.

Note - This is obviously NOT A SURE THING, but is a very high probability setup!

Good Trading,

Phoenix

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Dira,
schreibst Du etwa unter Mike Drakulich im CB-Forum, der schickt auch immer große Warnungen an die Bären aus!? ;-)
Es handelt sich hier um ein Intrady-Muster von 2-3 Handelstagen und auch die Konsequenzen, d.h. der bullische Thrust, ist in diesen Dimensionen anzusiedeln.
Gruß,
Manfred

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Biotech-index BBH

Gruss,
D.

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>Dira,
>schreibst Du etwa unter Mike Drakulich im CB-Forum, der schickt auch immer große Warnungen an die Bären aus!? ;-)
>Es handelt sich hier um ein Intrady-Muster von 2-3 Handelstagen und auch die Konsequenzen, d.h. der bullische Thrust, ist in diesen Dimensionen anzusiedeln.
>Gruß,
>Manfred

Nein - im Ernst, Drakulich bin ich nicht - und in dem Forum schaue ich auch z.Z. nicht vorbei. Ich denke dennoch, daß wir (nach einem evtl. letzten Selloff) die C nach oben eröffnen könnten, um die letzten Shorties rauszudrängen, bevor der Bearmarket sich fortsetzt.

Gruß, dira



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Selbst im bearischen Szenario 1.120 SPX wahrscheinlich. DAX 5.005 oder 5.078?

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>Biotech-index BBH
>Gruss,
>D.


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