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Steve recently wrote....
"To put the view I'm coming to baldly, then, a good number of the "Pattern"
folks (and, again, I was/am one of them) just flat out got the post 10/27
picture wrong because the "patterns" weren't (and never are?) enough to get
it right........"
If you look at the DJIA prior to the recent break, there was a descending
triangle that started with a low or base forming in June followed by the high
in early August. When the DJIA broke through the base line around 7600 it
counted to 6900-7000, which is about where it reversed. In a discussion prior
to the break I stated this was a possibility...a low of 6900-7000...then a
subsequent rally to possibly new highs in early 1998. Do not get me
wrong....I am not bragging. I am only saying that chart patterns are a
reasonable guide to market and/or stock action. What one must keep in mind is
to interpret the pattern only after it forms and then to interpret what you
see and not what you want.
Jerry
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