Loading ...CRB’s 15 Year Bear Market Almost Concluded
This chart is my answer to a very interesting chart submitted by Nightingale today. It might add something to the mix since this one shows the price potential between where we stand now and where we are going over the coming months. There is what I refer to as a “Pattern Gap” on this chart below. The gap is an empty space between parallel channels that must be filled for a channel to be completed. Generally these gaps offer us excellent price targets to set our sights on since they will eventually be met. My expectation is that the upper resistance level will be breached and price will move to new highs.
Nice interacting in CRB.
What you indirectly say … is that your upper-channel-gap functions as a magnet; for such I would like to see CRB getting above WEMA(30) first. Maybe, as it could also first go down significantly (f.e.) to full the GAP @ 125.
BTW: never heard of a ‘channel-GAP’ before. Can you present some former studies, showcases or links?
Enjoy your Sunday!
Pattern gaps are my own method Nightgale. Its part of my model in identifying rational targets. I don’t know if its written about in any technical books. Its just one of those things some chartists do unconsciously so one day I gave it a name and called those spaces “pattern gaps”. They don’t always get filled. But they are high probability so it gives us target prices to enter for our sell orders in a rising trend. The reason is that those channel gaps typically result in price reversals when the resistance lines are hit. So we want out before price comes back down.