Friday, April 20, 2012
I have been all over the Nasdaq 100 mini futures on the blog lately, and some of these posts are worth a review. The titles are on the right hand side of the blog.
Well the theme lately has been the Nasdaq 100 getting pushed to new highs with a classic reversal signal showing up and being all she wrote for the bulls.
First chart on the left hand side is a 30 minute showing the well defined intermediate downward trend. Until there is a solid breakout to the upside, the lower return trendline is a legitimate target in my opinion. There is only one side of the trade I am going to be on for the near term. If there are no bearish patterns there are no trades, it's that simple. Bullish patterns will be ignored, or will be watched closely for failure. Failed patterns are the strongest signals. The prior support on the daily chart is likely to offer less support next time than previously, and a breakdown from there will be very bearish in my opinion with the next legitimate target the "High Volume Node" at 2,316.
(Click on chart to expand)
For those who have been following the blog this week we had a near identical reversal pattern on the 5 minute chart at the new highs again. Right hand side blue oval below shows a "Bearish Engulfing" pattern or "Railroad Tracks".
More importantly, on the 30 minute intraday chart left hand side blue oval below shows a "Shooting Star" reversal pattern after the highs as well. The larger the degree timeframe the more reliable the pattern. Both of these had confirmation and down we went into the close.
Source: http://scottpluschau.blogspot.ca/2012/04/nasdaq-100-patterns-of-day.html
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