I’ve tried to be pretty consistent ..sometimes they work and sometimes they don’t. When the SELL pattern on the banking index appeared it was, in fact, a beauty.
however, after today’s close would consider it a FAILED PATTERN.
Banking Index FAILED PATTERN
Looks like you did not see my comment on you’re orig post….. which was…
How do you decide to use the $bkx index for signals on the XLF, I see how the $bkx hit the 78.6 retracement a few days ago, but XLF blew past that last August…. is it because $bkx is a modified-market capitalization-weighted index?
So would the fact that the two were not in sync cause you to question the pattern on $BKX?
Tim, apologize for the delay. the banking index and XLF should (the operative word) roll together pretty much the same so a SELL pattern on the XLF should be in/around the Banking Index but it won’t be a 1:1 correlation as they are weighted differently. that being said, i made a mistake and said XLF in stead of banking index. certainly apologize for any confusion. the patterns work and they fail .. this was a very nice SELL pattern on the banking index which got smoked. hope this helps and thanks for the dialogue.