First, excuse me for starting a new thread - this is the one part of the "perks" given to members of this Charts forum, I suppose, where there is still some flexibility for members to post under new threads where existing threads are thought to be unsuitable...
Ok, why a new thread?
Because I'm posting a simple chart pattern on the XJO, and the simple chart pattern is NOT unique, but a common, everyday pattern... yet it MIGHT be useful in helping traders find some guidance as far as short term timing of trades is concerned...and I thought, you might want to see some highlights on this simple but perhaps often neglected pattern.
The chart pattern I'm posting is the common and simple Pentagon chart pattern, as marked on the XJO chart below:
Well, the pentagon was drawn with the known dimensions of the range A to B, and note that I have circled the nodes at 1,2 and 3. Note also that nodes 2 and 3 are actually in line, and funnily enough, they were in corresponding alignment vertically to the forecasted bottom in the short term cycle chart below.
Now, what's so good about this simple chart? Why highlight such a mundane chart pattern in this august forum?
Well, I must first say ....sorry...! I really don't know.
But if you bring the same pentagon pattern as an overlay without changing any of its dimensions into the historical past, as shown in the chart below, you might be able to see some use of this simple chart pattern after all...just perhaps:)
Remember, what I did was just to bring the pentagon pattern of today to the past, and this is what I uncovered:
1. All the nodes marked 1,2,3,4 and 5 marked the turning points of the XJO reasonably accurately, as you can see for yourself.
2. The spokes of the pentagon marked the supports S1 and S2 and the resistance S3 respectively.
3. The foreasted cycle top corresponded to the vertical line drawn to node 5 which also happened to mark the resistance S3 along a spoke.
So, for being naive, may I pose these questions today:
1. Are the price movements or price ranges of the XJO related in geometric dimensions to each other during this current phase?
2. If the nodes and spokes did seem to nail the turning points in the historical past, will the future nodes marked on the first chart be of any use in simple timing forecasts?
Well, let's just await the future and see what is going to happen... and of course, please excuse this long post, and sorry again for posting some mumbo jumbo in this Charts forum. I know, by experience, I would have been roasted and put on the burner, and thrown out immediately for posting this chart in the other forum in HC ( you know which one ) :(
(20min delay)