Thursday, October 23, 2008

TODAY'S ACTION

We had lot of intra-day patterns formed today including, an ascending triangle, a descending triangle, a wedge, a double bottom, and flags. Each pattern led to another which is the reason why pattern recognition is so important. If you didn't know what the chances of a breakout of breakdown was for each pattern, then you'd be SOL and would be trading at the mercy of the market. Patterns foreshadow what is to NOT to come, but what is MOST LIKELY to come. Today was a clear cut day where each pattern did what they were MOST LIKELY to do. After 10 days, we are still in a triangle, but it is a descending one. The support we do have is a major one. Also note that volume is picking up, higher than the last 3-4 days. Make note of support and resistance in the 3-day chart for tomorrow's trading.

S&P 500 1-day

S&P 500 3-day

S&P 500 10-day

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

1 comment:

Tradermarketinfo said...

John once again show the power of technical analysis trading. I was told by John that we are forming a double bottom and a potential rally could begin. Although I went long a bit late, but I was able to book in some profit by following John's Advice. You are my Jesus John, I also learn a lot while trading with you.Below were the conversation we had.



***** = JOHN & Tradermarket247 = ME




***** (12:10:02 PM): We're out of here
Tradermarket247 (12:10:06 PM): spiking
Tradermarket247 (12:10:09 PM): going higher?
***** (12:10:11 PM): Double Bottom
***** (12:10:23 PM): and it is confirmed
Tradermarket247 (12:10:50 PM): most likely heading higher?
Tradermarket247 (12:10:53 PM): scaling in now
***** (12:11:21 PM): Why scale
***** (12:11:23 PM): When its confirmed?
***** (12:11:28 PM): you only scale when you are unsure.
Tradermarket247 (12:12:11 PM): i had 10%
Tradermarket247 (12:14:34 PM): wait we go long from here?
***** (12:16:23 PM): man, you should been long
***** (12:16:27 PM): Ever since I said double bottom.

(I did miss the initial rally, but I was able to book in some profit from the rally at the end.

GOOD WORK JOHN!!! THANKS so much!!