Straits Times Index - P&F High Pole Forming
A pole is a long column of Xs or Os with a column of Os or Xs alongside. For a pole to occur there should be some sideways consolidation prior to the pole. Usually there is further sideways consolidation on the other side of the pole before the pattern breaks.
Most chart patterns in Technical Analysis should not be anticipated because the final signal from a pattern may never come, so it is best to wait for it before acting. High and Low Poles are different. It is possible to act while the pattern is being formed. The common strategy with a high pole is to sell when the reversal column of Os retraces 50% of the X column length ( which is now ).
Poles are not infallible ! This post serves to point out such a Point and Figure setup that exist but the final signal depends on how the market unfolds itself..... It is too early to give a price target amidst the pole that is yet to complete.
This post is about the medium term view of STI ( 3 ~ 6 months ). It is not about how STI will move tomorrow or next week. After 6~7 successive losing streaks, there will be no surprise for a technical rebound next week. But what come after the rebound...?
Finally, a video ( Robert Prechter's interview with Bloomberg ) that should worth 10 minutes of your time: Click Here
And the article from EWI : Click Here
Most chart patterns in Technical Analysis should not be anticipated because the final signal from a pattern may never come, so it is best to wait for it before acting. High and Low Poles are different. It is possible to act while the pattern is being formed. The common strategy with a high pole is to sell when the reversal column of Os retraces 50% of the X column length ( which is now ).
Poles are not infallible ! This post serves to point out such a Point and Figure setup that exist but the final signal depends on how the market unfolds itself..... It is too early to give a price target amidst the pole that is yet to complete.
This post is about the medium term view of STI ( 3 ~ 6 months ). It is not about how STI will move tomorrow or next week. After 6~7 successive losing streaks, there will be no surprise for a technical rebound next week. But what come after the rebound...?
Finally, a video ( Robert Prechter's interview with Bloomberg ) that should worth 10 minutes of your time: Click Here
And the article from EWI : Click Here
Reference material :
The Definitive Guide to Point and Figure by Jeremy Du Plessis ( An Excellent Book )
The Definitive Guide to Point and Figure by Jeremy Du Plessis ( An Excellent Book )
Labels: Market Direction
posted by Market Wizards @ August 15, 2010
Comments: 0
