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"Widening Mouth" technical pattern - Example here


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"Widening Mouth" technical pattern - Example here

 

Well, this book fills in the missing jigsaw piece now. I don't know who exactly wrote this book. Was it Jesse Livermore interviewed by Flumiani? Did Jesse Livermore scribble down those notes and draw those pictures? We'll never know until I can get hold of the first 21 pages. But what is important is the information, that we have. Additionally what the R.Smitten books don't say is to concentrate on one group at a time. Look at my pivotal points chart of how I interpreted it, further up this thread, and now take a look at what is in the book.....

 

JL.PNG

LEFT CHART - If you take 50, 60, 70, 80, 90 as pivotal points that chart is tradable. The author stresses that volume is important. At the bottom of the chart is the volume. Volume rises when the price rises, and volume falls back on a pull back. After a top point number 10, volume behaves differently, which gives us a clue - never catch a bottom. The price falls, and the volume is high!

Going back, at point number 7 the author writes about the price falling back to 59 - this is still a normal reaction - and I believe if you want to stay in the trend, your stop should be safely raised to 58 assuming that the 60 area is to hold and cleared at point 6. The stop is NOT 59! You will be stopped out!

 

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Peter Brandt has also used this chart - http://peterlbrandt....go-short-apple/ What I disagree with is the "number counts", I believe they were used to illustrate what was happening, and not that every chart will go through 15 "elliot-type-esq" waves. However he was correct in calling the intermediate top of Apple AT $650 ( BUT it powered on to $700).

 

I need to save this comment from that article here for now, as this is an important clue;

 

AAPL $613

Mr Guru • a year ago

Would Livermore short? No.

Livermore said when a stock first breaks a multiple of 100, it will continue to the next 40 - 60 level. Just broke 600 ... this ain't the time to short. Check again at 640.

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This one (BDEV) seems to fit the pattern, with some minor stretching ... update

 

84j.gif

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"Widening mouth"

 

Wow, I didn't notice that. This could be explosive - thanks to all that funny money! I am watching BDEV and TW. very carefully!

 

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In fact we are having a building boom here in the UK again. The roads are being resurfaced (they just done most of the New Forest area), all the street lamps have been replaced with LED ones two months ago. Big flat complexes are being erected all over Southampton. Namely, Woolston (new waterside - it's huge), Basset, Lordshill, Ocean Village (in my diary there is a video of a guy hanging off a crane), Shirely and at the back of the Main train station. I'll take some pictures for proof where I can.

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I cannot see a big slide coming in BDEV anytime soon.

 

If it happens to fit the W-Mouth pattern, I will be surprised and impressed.

 

(BTW, it is not a perfect fit, just an approximate fit.)

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Ah I think I misread your chart with the annotations. At quick glance I thought that entire recent uptrend of BDEV was the accumulation cylinder/widening mouth. We could have the blow off top soon (BDEV doubling from here?) This is the slight problem with pattern recognition as you can look out a bit and you can see a pattern within patterns.

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It would make sense to AWAIT a parabolic move in BDEV, before expecting a big selloff.

 

Perhaps the W-Mouth pattern, is really about parabolic moves

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Yes, I suppose GLD / Gold does fit - Here's the Weekly chart since the inception of GLD :

 

nyd.png

 

Just add +2 to each of the numbers, since the uptrend had started before GLD was launched

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Another Widening Mouth ?

 

ng6.png

 

But no right shoulder yet !

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