This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
The dow is extremely extended on the daily chart, but check out this monthly view. It broke out from a 6yr. C & H pattern late last year.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
May 2nd, 2007 at 2:06 pm
That’s cool. Check this out, if you’re from across the pond, the Dow is craptacular:
http://stockcharts.com/h-sc/ui?s=INDU:XEU&p=W&yr=2&mn=0&dy=0&id=p20537203826
It hasn’t even hit a new high on that basis.
May 2nd, 2007 at 3:22 pm
that’s interesting…thanks for posting that chart
May 2nd, 2007 at 5:18 pm
The markets are fractal, and there’s perfectly rational order in some timeframes that makes other timeframes look crazy, just as you said in your post. It’s good to be aware of it all!
May 2nd, 2007 at 11:18 pm
am curious: I don’t see the tie-in to fractals here… the fact that there is some fractal nature to price movement shows up when there’s self-similarity at different timeframes, no? As in, a cup+handle at the point of breakout on a larger cup+handle, for instance.
May 6th, 2007 at 6:10 pm
[...] as strong as it looks when you account for the declining dollar. Check out his comment when I made this post. Corey expounds on the idea, and its a very interesting read. Is it possible that the rise is [...]
May 7th, 2007 at 5:39 am
You’re right, Richard, that’s not technically fractal in that there is no self-similar price pattern. I guess I meant “hierarchical order”…