yes, I know that even thinking of BUYING TBT in this current market is insane BUT I really don’t care … it’s a BUY pattern that works or doesn’t. i did a quick blog on interest rates last week and those targets were SMOKED by the end of the week action but take a look below and then figure out a gameplan.
please see below:
we have a lot going on here:
- Fundamental Frequency: take a ‘major’ high and low or vice versa and divide them. you now have the ‘fundamental frequency’ to define the move … see the purple dashed lines? those are fundamental frequency targets
- Square the High: if you take the square root of the all time high you get 17.31 which is basically where we closed
- the market likes to go ‘down’ around 65% per swing
- additionally, if look at the foldback point we have the two big blue arrow s equal in their measured moved
- Volume – MOST VOLUME EVER. capitulation low? Hmmmm
So, let’s don’t be a hero but … let’s see if the low was in place on Friday OR the market goes down a little more (TBT) into the buy zone of 14-15 and then wait for the market to EXPLODE off these levels and then try to get in .. if the market does a dead cat bounce and well, just goes pfffffffff … then stay away.