Monthly Archives: May 2007

Yesterday’s market showed multiple parallel lines, but even a single parallel will often confirm a target. This is particularly true when price breaks out of a triangle. Last week ended inside a small triangle (magenta lines), and today’s first bar … Continue reading →

I’d have trouble trading if I used a program that wouldn’t draw parallel lines. I’m constantly drawing lines beginning at various pivots that are parallel to a trendline already on the chart, and every line on this chart is parallel. … Continue reading →

Yesterday I said that we had reached a logical level for a pullback. Actually I was anticipating an A-B-C pullback from the closing level followed by another five wave rally. Correct on the pullback — wrong on the rest. The … Continue reading →

My apologies to those on the east coast, but the blog entries for the next few days will probably be posted quite late. I’ve mentioned a number of times how the 162% external retracement determines the way I look at … Continue reading →

Yesterday I didn’t mark an A-B-C for the downside triangle and its target because the previous day’s low seemed to form a strong support. So today the market started out by breaking that support and reversing right at a Fibonacci … Continue reading →

On May 1st I titled an entry “Time and Target” with an illustration of how a triangle will often give you a price level and a time projection. Most of my trading deals with recognizing recurring setups in the market, … Continue reading →

There was certainly not much of trading interest today, so I’ll keep this short. A small opening gap led to a tight congestion area at “A.” It was only after price pulled away from this range that you could see … Continue reading →