"Martis also has been tub-thumping about a broadening formation. Bulkowski rates the broadening bottom formation as being extremely low in reliability. The broadening top is no better."
Redbacka..with all due respect, bulkowski has no idea.. i bought his book 4 years ago..just for a read.. after the 20th page i gave it away.. Broadening formations are very reliable..especially at tops..one needs to consider the formation at hand..and why it has formed.. broadening formations at bottoms are useless..but at a mid point they are reliable if the globe is pending default.. Bulkowski is a try hard technical analyst.. he does not consider to explain the "EVENT" for why the formation has formed.. EVENT is what one needs to consider when weight is put on a specific formation..eg..if analysing indices, are markets bullish or bearish? In regards to companies.. there are thousands of factors one needs to consider when looking at a formation before betting on it.. money in bank..results..pending results..number of shares outstanding and so on and so on.. When one reads a book on technical analysis..one might learn on how a specific formation might play out..but the book will not explain why this happened(known events at the time of why the stock or index faultered)book does not explain this...In other words when one looks at a formation he needs to apply many factors on the possible outcome of such a formation.. what are the markets doing at the time..at current the globe is pending default..bernanke is telling us all is o.k..lol and the charts have broken some serious support levels..lol
To conclude redbacka..I for one look at every possible time frame.. what might seem as a bullish formation in one time frame is bearish in another..i also tend to look at whole numbers on longer time frames for support and resistance..hence why i call myself a numbers man..lol eg..DOW 12000 i mentioned that this was the mother of all supports and if broken it was over..WALLA markets collapsed.. I also do not disagree with the chart if it tells me to turn i will turn, no matter what..its that simple.. The markets are in a bear market..C wave is now upon us.. until DOW 12500 IS SMASHED i will remain a bear of bears... Dow is heading way lower...either be it next week or in a months time.. but i can assure u, in my humble opinion DOW 12000 might be touched but there after KISS it goodbye for the next few decades...
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