Classic topping pattern on ES

[malvado xetra]

Walter The First Chart Of The Past Post Wasnt The One I Wanted To Show You

[notouch]

It's not necessary to look for a "strict" shooting star. That's just nit-picking. In any case, the one that really matters is the cash SP500 which is a strict shooting star. The 0930-1615 ES chart also finished down on the day. What really matters is what price action is telling us, i.e. a lot of new longs entered the market and drove the price up but strong selling drove the price down again.

[walterw]

	Quote:	malvado xetra
	Walter The First Chart Of The Past Post Wasnt The One I Wanted To Show You

ok I see... now , is it my impression or the second "green" wave its to small ? shouldnt at least have a .38% retracement to be considered a wave ? what metrics do you use to determine a wave ? thanks Walter.

[malvado xetra]

hi walter,

first, sorry for not to answer you earlier but, today it has been a very intensive day and possibly clarifying to know exactly where we are in the markets and what can come next. I have been all day studying the charts and I couldnt replay you so.

I have made a new chart for you recounting the elliott waves for the ES. I know that counting elliott can be very confusing if you dont have practice with it. to count waves can seem simple but, believe me, it is really complicated and you have to take in account a lot of things like subways, significative highs and bottoms, retracements, alternation rules, volume bars, fibo levels and so on. and, aswell in different time frames to be sure that coincedes in all of them.

the new chart is quite detailed and clear. hope you enjoy it. I attach too a DJ transport daily chart quite clarifying

[walterw]

Great analisis MX ¡¡ it really has a lot of clear evidence that we should break up uhhh ¡¡¡ that "shooting star" its really an inverted hammer, as you made prior correction on other post, to be a shooting star it should be higher than previous bar... so yes we will see what happens.... cheers Walter.

[notouch]

Here's what the Candlestick Man himself (Nison) says about shooting stars:



So it was a shooting star (but I agree not an ideal one, especially as it wasn't above the previous candlesticks) and we had a little bit of weakness in the morning but it just turned into another buy the dips scenario. The strong close puts the bulls back in charge.

[walterw]

	Quote:	notouch
	Here's what the Candlestick Man himself (Nison) says about shooting stars: So it was a shooting star (but I agree not an ideal one, especially as it wasn't above the previous candlesticks) and we had a little bit of weakness in the morning but it just turned into another buy the dips scenario. The strong close puts the bulls back in charge.

I dont think Nison is the last resource on candlesticks... but the name of this candle varies from shooting star to inverted hammer depending where its situated in comparison to previous bar... classical candle books teach this... the reversal "power" of a shooting star happens really when she is alone on the top...

[notouch]

I agree with you there walterw. I'm going to do some more research into candlesticks because unlike intraday trading where candlestick patterns are never perfect, on the daily charts candlestick patterns often are perfect. The last big correction was preceeded by the classic three mountain top pattern and the three black crows candlesticks. If this rally ends in a shooting star it will probably be a gap up to new highs then a massive rally to new highs then a decline back to the open.