Target for S&P Triangle Breakout? (Picture Attached)

[Landis82]

Quote from TT1:

For a simple target take 1044.31 - 839.80 = 204.51 pts.

Add 204.51 to the level of the breakout of around 930. 204.51 +930 = 1134.51 area. hope that helps ya!

And interestingly enough, a 61.8% fibonacci retracement of the recent leg down in the SPX from 1313 on August 11th to the low at 839.80 gives you a possible target of:

1132.



NOTE: For Elliott Wave followers ( Art Cashin being one of them ), a 5th and final leg down is in the offing. Thus, we may not see such a large fib retracement to the upside, but rather something around 38.2%, or even smaller.

 

[MKTrader]

Thanks, guys. That's helpful.

Quote from TT1:

Also that 1134 area represents a .618 fib retracement from the Aug 11 high and Oct 10 low. .618 retracement come in around the 1132 area.

 

[Pholeuon]

And there is ugly bailout gap at 1109 that needs to be closed ass quick as possible.

 

[PAPA ROACH]

Quote from stock_trad3r:

if any of this mumbo jumbo worked wewould all be rich, right?

Using your brain, (stock trad3r), you will never be anything, especially rich. You know absolutely nothing and think you know everything.

 

[PohPoh]

Quote from stock_trad3r:

if any of this mumbo jumbo worked wewould all be rich, right?

True...lets just stick with fundamentals like you..
How'd you do?
PO PO PO...

 

[krazykarl]

Quote from MKTrader:

If the S&P breaks out of its triangle-type pattern and its Oct. 14 high (1044), what would the projected target be? I'm not a strict chart pattern trader, but I know there are ways to calculate relatively high-probability target areas.

Thanks in advance.

you need to work on your trendlines.

 

[HooLee]

One way to do it is to draw a parallel line to the triangle line, look at the chart...

 

[MKTrader]

That was just a quick and dirty chart. I know both Trader Vic's and Demark's methods, but I'm still not sure if there's an optimal way to draw them.

Perhaps you could enlighten me with a chart?

Quote from krazykarl:

you need to work on your trendlines.

 

[MKTrader]

Thanks--interesting. I've seen that before but didn't think about applying it here.

Quote from HooLee:

One way to do it is to draw a parallel line to the triangle line, look at the chart...

 

[HooLee]

Add a stop line and you have a tranding system.