The Toronto Stock index is tracing out a very interesting pattern. So far it has formed an exact replica of the topping pattern from 2008. Hank Wernicki's theory is that markets operate in chaos until a fractal appears bringing order, and a turning point in price upon completion of a fractal pair. The first fractal is the parent, the second is the child in this case. From a trading perspective, the appearance of the pair allows for a low risk entry usually close to top tick. Since most of the global markets are in sinc a turn in this index would coincide with a turn in the DOW, etc. This pair is appearing right where you would expect it to considering the overwhelming bullish sentiment, etc. I'm thnking sell the QE2.
1 comment:
excellent eye +1
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