Excellent work and explanation. I wonder how many understand the amount of hours, weeks and years it takes to provide this high level of analysis of what the charts are telling us. So many people tell me that charts are a lagging indicator so not relevant. My thought is the chart represents the buying and selling decisions of all investors charted in real time for all to see and as such can show historical patterns especially around bottoms and tops. This can greatly help investors make decisions about the balance of probability as to a significant change in trend.
Here's a real time example that stands out like dogs balls atm.
What you see here is the exact same pattern that has unfolded the last 2 yrs after a Money Flow low(aqua vert line). The red short horizontal lines bring clear focus on the SP action in the weeks after. An attempt to break out failed leading to a test of the MFI low and the ultimate low before a second attempt. The yellow vert line shows the week the SP closes above the MFI low and took off from there. You can see the MFI rose after the MFI low even though the SP reached new lows signalling a bullish divergence.
Now you'd have to be blind freddy to not see the significance and balance of probability in these patterns repeating for 3 yrs running now. The SP closed above the MFI this week to confirm the pattern is intact atm.
As all assets are priced at the margins there needs to be a supply of new investors for SP appreciation and there are no better advocates than current long term holders who are finally IMO able to recommend BLG as an underdiscovered undervalued high risk investment. I am sure many like myself are recommending to family and friends to do some research and look at this as a serious investment for the future.
If this pattern does repeat then a break out from the 4yr wedge is on the cards. A break and hold above the trend line would likely bring in the momentum traders as well.
Lets see if the balance of probability plays out. A big catalyst would be news around our CLAWS Hub funding.
