Dow Giant broadening top formation?
- Thread starter NickLv
- Start date
i don't think so - Your not placing the upper TL on the highs throughout the entire pattern - that's putting your own spin on it. Both patterns are breaking rules of classical charting which voids this out. For example the larger pattern the second low is not lower - and it needs to be. The other problem on both of your patterns is that the reversals should not be more that 2 months apart or its no good. You smaller pattern on the right from April - June was a flat top broadening with a real nice break out in July - that did fit classical charting. Your trend lines cut through congestion at times - it has to link the reaction highs. I can guarantee you this is not a broadening top- not even remotely close.
@comagnum they're not trendlines, they're an example of something the name of which escapes me at the moment. Not worth bothering with anyway, as if the market cares about random lines on a chart?!
@NickLv that all looks pretty on a chart but not worth much in trading. It may well go down but not because of those lines on your chart. I'd expect more consolidation until November. Plenty of support at 177 - 180 and any breaks higher would be unlikely until after the election. I'd rather watch and wait if you were looking for a multi week/month trade. Of course anything could happen at any time, you never know what millions of people will collectively do. I wouldn't put you off selling a lower high there, after all, it's your money not mine ;-)
@NickLv that all looks pretty on a chart but not worth much in trading. It may well go down but not because of those lines on your chart. I'd expect more consolidation until November. Plenty of support at 177 - 180 and any breaks higher would be unlikely until after the election. I'd rather watch and wait if you were looking for a multi week/month trade. Of course anything could happen at any time, you never know what millions of people will collectively do. I wouldn't put you off selling a lower high there, after all, it's your money not mine ;-)