What will form?

Autodidact

Autodidact

In this modest journal I intend to post charts of incomplete patterns with several potential outcomes.

The following chart of NDX Daily suggests:

A triangle could form.

A downtrending pennant could form, subsequently a bull flag could form.

When one can successfully predict the outcome of a pattern formation in progress great profits can be achieved.

P1.png
 
Or, since this is mean-reverting . . .

upload_2015-3-25_20-13-37.png


The lines come from the weekly chart.

Something else to consider, though this is probably too easy:

upload_2015-3-25_20-21-7.png
 
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Autodidact said:
In this modest journal I intend to post charts of incomplete patterns with several potential outcomes.

The following chart of NDX Daily suggests:

A triangle could form.

A downtrending pennant could form, subsequently a bull flag could form.

When one can successfully predict the outcome of a pattern formation in progress great profits can be achieved.
More...
I'm not really into predicting like that. I just trade my time frame until it makes sense to go the other way. So I don't know. Right now, I am short. What do you think will form?
 
P1A.png
Buy1Sell2 said:
I'm not really into predicting like that. I just trade my time frame until it makes sense to go the other way. So I don't know. Right now, I am short. What do you think will form?
More...

Predicting what will form is much easier vs predicting how a complete pattern will proceed.

My bet is a triangle attempt will form, meaning, a HL will plot, if that "breaks" then a downtrend channel to complete the missing 4th pivot.

Eventually, I expect NDX to make all time highs but even before we breakout I expect to be loaded with profits, so I can escape any breakout games, breakout trading is far from my game.

Will they come via Triangle breakout to the upside?

Will they come via Bull Flag Pennant breakout ?

Will they come via Bull Flag Pennant breakdown and eventually morph into an inverse head and shoulder with the fakedown being a head?

I don't know those answers yet, but land ANY of those predictions and you got yourself a killer risk reward trade allowing you to be wrong much more often than right, and make ample rewards.
 
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NQ Futures 24 hours 240min Timeframe

Possible Formations

- Downtrend Channel
- Pennant
- If it breaksdown, inverse head and shoulder

p2.png
 
I'll point out that price overnight reached and penetrated the "mean" line that I drew in my post above. This has its own implications. But you seem not to have any interest in Auction Market Theory. Sorry to intrude. :)
 
NQ Futures 24 hours 240min Timeframe

The 4th pivot did not offer exact support in the move down as a lot of games and stop hunts are executed in these key areas.

However there is a potential backtest of an old downtrend line that could act as support for a failed breakdown of the formation, should it decide to go down further.

Will update as new data plots within the upcoming days.

p2a.png
 
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NQ Futures 24 hours 240min Timeframe Update

Pennant Pivot remains support.

Possible Formations:

Pennant Completion
Bull Flag Completion
Inverse Head and Shoulder should pennant break down

Areas of Interest for next week:

Potential Resistance lines in dashed-red
Potential Support line in dashed-blue
Future Areas to examine in blue

p3.png
 
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