Monday, December 17, 2012

Beware of a Fakeout

We may have a little bit of a fakeout here, at the apex of the triangle. We always do...

click on chart to enlarge


  1. I don't get it.

    I see two formations, in both you've outlined, rather than a fake out, the market went UP.

    So, why would you say fake-out, when the chart pattern you've labelled would say UP ?

    It sure could be a strong retracement wave, but surely any closes in the 1440s throw out just about any bearish outlook?

  2. So I said "fakeout here, at the apex of the triangle". I outlined where we are compared to the other formation by the vertical green line. So basically after a breakout above the red and blue lines I first expect a trip back down into the triangle before another push higher. I confirm your view that the direction is up, as I have been saying for many days now, but I wanted to let the traders know that in the very short term the breakout will be sold hard, and only then the price will continue higher. Just follow the previous formation from the vertical green line. It's almost a carbon copy so far...

    Thank you for a very good question. Hopefully my answer clarifies any confusion.