friday trading, page-3

I never thought I'd be typing this but when XJO opens this morning the initial gap will give 100% completion of my expanding wedge on XJO daily. If you check my chart history, I (and hardballgets) noticed this pattern around December last year.

It has slowly developed from a small pattern with conservative targets into a monumental beast. When it finally broke down, I didn't expect it to make it much past 50% completion which is normal for expanding wedges.

The points target for 100% completion is approx 3250 and I haven't tried to be any more precise than that. Some of the lines can be drawn slightly differently depending on ones method of interpretation. So 3250 it was, and now is.

I want to make it perfectly clear I'm not calling a bottom as I try not to call them. If the pattern is to continue behaving itself I would expect some consolidation now for a month or so while bargin hunters and bears fight it out but anyone who has been watching this market this year knows anything can and will happen. A test of 100% retrace of the bull run is now a strong possibility imo and could occur in a consolidation period given the size of market movements.

One interesting thing that has happened as I have watched this pattern unfold is the number of times other technical analysis methods have shown turning points, support levels and the like. Just goes to show how well collaborative TA can work. I've said it before and like many others have as well, thank you to everyone on this thread that have put the effort in with different idea's and thoughts. We don't always agree and individuals get it wrong sometimes (myself included) but as a combined effort I think those that participate on here regularly get it right.

In my efforts to keep the thread updated as the pattern has developed, I hope I have helped a few people make a quid. When I first spotted the pattern I was still new to trading futures so I didn't have the confidence or experience to back my call long term.