Loading ...THE MOST IMPORTANT CHART ON THE PLANET
US DOLLAR INDEX….SIMPLIFIED
THE CHARTOLOGY IS AT A HUGE INFLECTION POINT
RIGHT ON THE LINE AND THE 200DMA
THE BULLISH INTERPRETATION IS THAT WE HAD A FALSE BREAKDOWN AND NOW WILL TAKE OUT THE TOP LINE
THE BEARISH INTERPRETATION IS THE BUCK STOPS HERE AND THIS IS A HALFWAY DOWN FLAG
…….
EVERYTHING…HINGES ON THIS CHART
The Market Sniper’s interpretation is we are ready to rock n roll!
https://www.youtube.com/watch?v=at6IUoYmxZI
> A HUGE INFLECTION POINT… THE BULLISH INTERPRETATION IS… THE BEARISH INTERPRETATION IS…
Nice chart! And yes, this is the way I look at charts as well. There are traders, who ‘know’ USD is going up from here on, and there are the ones, who ‘know’ it is going down. And they will trade accordingly. They are all mostly educated guesses.
Our job is, to find the inflection points like the one you posted, and then watch, how price respond to it. I find as most reliable chart patterns the ones, that fails. Many watches head and shoulders pattern for example. I’m watching, if it breaks down through the neck line and then day or few days later comes back above it. If this happens, price usually goes higher. Not always, but you do have odds on your side and stop loss not hat far away when you get double or triple fake moves.
I still have those SPY puts I bought July 27. It is no doubt, I got lucky to short SPX on the day, that it printed highest tick. But the reason I went short (as hedge for my declining portfolio) is, because price made new higher high and then reversed back, engulfing last few days. (there are few other reasons, such as, if you switch to weekly, you will see, previous break the trend line and accelerated decline started about this same range, (tested and rejected on April 1, 2022) my preferred was of spotting S & R levels, not former top or bottom ticks)
Looking now with the benefit of a hindsight, it would be better, if I went short, after daily trend line was broken, August 2nd. This way you get additional sell signal, confirmation.
Level 4500 looks like good inflection point as well. In June and early July price was coiling than broke up. But now price is bellow this level. I’m looking at this as failed break up pattern. So, it seems like all is aligning up, for bearish SPX side. I have no clue how long SPX may still go down. But what I will watch next is, how price and volume reacts when we get counter move up. If volume on up-days is smaller, it will be indication to me, that new lower lows may be in play. So far everything looks this way but who knows, certainly not me…
…my preferred WAY of spotting S & R levels…
Agree Buck…Rambus teaches one of the more relieable patterns is the false breakout and reversal
Thats what we have here for the Bulls….but still we could see the reverse of that with another breakout above the upper line and then a reversal….Then we redraw the lines and would have what Rambus calls a Morphing Pattern
‘Rambus teaches one of the more relieable patterns is the false breakout and reversal’ …
Such sure seems like a WOKE statement within the World of Chartology – IMO. Such states that charts are useless.
NOTHING CAN BE FURTHER FROM THE TRUTH NIGHTENGALE
since it is a relieable outcome that IF a chart breaks out and then reverses…you have a strong probability of a powerful impulse move in the direction of the reversal
Without the chart pattern you would NOT recognize this .
Of course IF you bought the breakout you need to be vigilant for this event