source: http://scottpluschau.blogspot.com:
It is impossible to point these patterns out before hand on the blog. I have been getting away from this type of posting. Since I posted an intraday pattern on gold today I thought I should mention yesterday's pattern on the Nasdaq 100 futures.
There was a textbook "Bear Flag" on the 30 minute chart (see left hand side below) with the "Measured Rule" target nailed for $600+ per contract. The saying is the "flag flies at half mast". Notice the flag pole or mast was on strong volume, with diminishing volume in the flag, and a pickup in volume on the breakdown, which increases the probabilities of continuing supply toward the initial profit taking target in my experience.
The flag portion of the pattern forms due to over anxious buyers, either looking for a discount and a bounce too early, or with losing traders averaging down. This is a pattern of distribution.
I know I wouldn't ignore this pattern, and it doesn't matter to me what "wave", "level of Fibonacci retracement", "regression channel", "moving average crossover", "standard deviation band" or some "oscillator" is reading.
(click on chart to expand)
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