Hi mulgabill,Butterflies, bats, crabs are long term harmonic...

Hi mulgabill,

Butterflies, bats, crabs are long term harmonic patterns which take months to form, and if you refer to the chart of NAB posted, you can see that it took quite some time to form, and in fact they are developing patterns ie. their geometric measurements have not achieve the defined measurements, but do show good signs of these harmonic patterns.

The presence of these harmonic patterns serve to alert us on the possibility of an impending turning point--and a reversal that will last a while - basically a longer term indicator.

If short term price behaviour is to be gauged, perhaps the use of shorter term indicators such as momentum, volume outbreaks, price outbreaks may be a better indicator than using these harmonic patterns.

I can only agree with you that tracking the index for a reversal of the short term downtrend may be a good way in observing NAB. In this case, tracking the financial index for a reversal might be preferred.

Cheers!

dascore