Welcome to the video update for Thursday, May the 6th. First chart is the yen daily where the potential for a dragon pattern is beginning to be seen. See what part of the dragon has formed and what to look for next. Today also gave an aggressive buy signal, based on the double bottom pattern and the candlestick that formed in Wednesday’s trading. Dial down to a 60 minute chart to see the potential for a change in trend here.
Weekly crude in 3 short trading days has created an outside week with price currently in the buy zone. Trader Rick looks at the 525 tick crude chart where a dragon pattern may also be forming.
The ER and ES both had ab=cd patterns mentioned in the weekend update so today’s video updates these patterns. In the ER, price reached the 1.618 extension of the ab=cd pattern in early trading on Wednesday. See where overhead resistance is. In the ES, in the first hour of trading on Wednesday, price reached the 1.27 extension just below 1157.00. We also had a 1.618 fib of a swing coming in at 1157, creating a confluence of fib levels. Overhead resistance lies in the 1176 area which was previous support.
Good trading!
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Tags: ab=cd pattern, double bottom, dragon pattern, overhead resistance
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