I am not going to re-hash what other bloggers are saying but in terms of major equty indices, the pattern I am focusing yet again is, you guessed it right, triangles. FTSE100, DAX30, S&P500 and Nasdaq100 all appear to be within triangles. Triangles are continuation patterns in 3/4 of cases. Breakout (to the downside?) from this pattern is what I will be waiting for.
One of the congestion patterns one comes across a lot is when the price is squeezed between two moving averages. Breakout from the clutches of MAs gives a directional bias for the next few sessions at the very least. As you can see, both FTSE100 and S&P500 broke out of the 200MA and 50MA range. My bias is to the downside as long as both are below their respective 50MAs.
The further into the apex Nasdaq100 gets, the more should we discard the triangle pattern.If that will be the case, I will then focus on the rest of indices for the signal.
Good luck
One of the congestion patterns one comes across a lot is when the price is squeezed between two moving averages. Breakout from the clutches of MAs gives a directional bias for the next few sessions at the very least. As you can see, both FTSE100 and S&P500 broke out of the 200MA and 50MA range. My bias is to the downside as long as both are below their respective 50MAs.
The further into the apex Nasdaq100 gets, the more should we discard the triangle pattern.If that will be the case, I will then focus on the rest of indices for the signal.
Good luck
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