Harmonic Patterns of XJO and Stocks - WEEKEND CHARTING ======================================================
This is my first post of the harmonic patterns of the XJO and stocks under the weekend charting general thread. I hope those who have been following these patterns in the XJO thread ( under Charts or the ASX by stock forums) will be able to catch them as they are now nestled within this general thread and are not amenable to searching under the title "XJO".
OK, here goes... first, the update DAILY chart of the XJO as a proxy of the market.
As you can see, we have achieved the completion of an IDEAL bat pattern. It is customary for the prices to fall back or correct at the completion of this pattern, without any underlying or other patterns influencing prices. Also note that at the end of the daily chart, there are three dojis forming a version of the TRI-STAR candlestick pattern, denoting a lot of indecision in the market. So some caution is necessary because this may be a harbinger of a pullback.
But having said that, why is the XJO still holding on with this indecision? To try to answer this quesiton, I've taken a look at the WEEKLY Chart of the XJO to see whether there is another underlying pattern still yet to complete for the XJO which can explain why prices have been holding - as if there is a tug of war between pulling back and reaching for another pattern to complete.
And I've found there is an IDEAL CRAB pattern on the WEEKLY chart of XJO which is yet to complete as follows:
To conclude this weekly update, I'd like to post a chart of a penny stock with an interesting harmonic pattern as well. This stock is AOK with a soon to be completed Butterfly harmonic pattern as follows:
Just another note - the completion targets are projections, so they may be or may not be precise. It is best to use them as a guide to help in your analysis, and not as a standalone decision making indicator.
