Friday, November 14, 2003
Friday, 14 Nov -- that loverly 135m
This mornings price had me snorting and huffing as it crossed the 1061 resistance and headed for the 1.27 extension of the prior reversal. Alas, it deflated and left a spike through the upper median line, which was a short signal.
I got hosed day-trading the next bar off a 15m chart and called it an early day. However the afternoon closing bar cut right through that yellow bisect, indicating a continuation of the pullback.
The typical move now would be to briefly retest the bisect area(~1051) before heading for the lower median line (~1043), where there is also The Gap. Having already tested the upper boundary twice before, the gap may well act as an air pocket sucking price clean out of the consolidation range. I've sketched in AB=CD extensions, which also coincide neatly with the gap. This is a HIGHLY geometrical chart. I really ought to see if there is a tradeable time symmetry there.....
It was a friendly chart for the last week, but it may turn on me next week. Fate and the market are fickle that way.
PS-- An interesting "case study" for bisect traders is the so-called "trigger line" (Mikula calls it that in his book), or what Andrews called a "warning line", in this case that faint grey "trendline", which is really an extension of the P1-P2 line. Each bar with a tail outside the line managed to close within that line. A close outside of it would have been a bisect failure. One thing that often happens is that price then trades inside that little area created by the trigger and the upper median line. That is less likely in this case due to the aggressive closing bar.
click chart to enlarge in separate window
Labels: chart-analysis
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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