back to the basics …

a very good friend of mine has sought my assistance in becoming a pattern recognition guru.  I do this very sparingly because before I ever accept this challenge and privilege I make sure they have read  Why?  Because the PATTERNS fly against the convention of any modern portfolio theory, CNBC talking head pundit and, quite frankly, many noted technicians.  Flush the brain, find a pattern and take the trade ….

so, in a nutshell it comes down to 3 things : Project, Extend, Retrace.

PROJECT – the basic (no less important) is ab=cd.  (shown below)

EXTEND: from the b  point EXTEND based on the bc leg UP (or down) into the ab=cd region by 127%, 141.2%, or 161.8%.

RETRACE: Xa retrace by .618 or .707 or .786.

Where they come together … a PATTERN is formed and you take the trade.

That is ALL you will EVER need to know …

Below is the JPY 120 minute SELL pattern at/around 103.09-103.30

Make it a great weekend.



Japanese Yen Advance

I have been following this pattern closely … after an amazing move upward, we have been consolidating in what looks like a multi-month triangle.  From a counting perspective it does fit the  characteristics of a 4th wave so we’ll have to watch it closely for signs of the triangle being complete.  At this point, right now, I don’t know.  The symmetry of the ratio’s of the legs is “close” to the rules (they are supposed to be .618 of each leg) and the most latest low of yesterday finished a very nice buy pattern.  For now I will sit on my hands … but the move is coming for weakness of the JPY versus the USD.

long term count
long term count


daily chart of triangle ratio's and potentiality
daily chart of triangle ratio’s and potentiality


other targets
other targets


pattern complete
pattern complete


60 min chart as of 0400 10/10/2013 ... pullback coming to buy (?)
60 min chart as of 0400 10/10/2013 … pullback coming to buy (?)





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