Hi Jim,

Thanks for opening this Forum to your students and giving us an opportunity to show our charts and share our ideas.

Here is a chart of todays ABCD's in the russell. I will post a context chart later. Today was one of those days where the market changes direction on Jim's unique Fib numbers, Had you been trading with standard fib numbers you may not have noticed these PTA's. Is it me or is .564 becomming more and more prevalent?

That was pretty amazing, also considering the lines that came into play at that spot. Trade for an hour and go to the beach. Wish it could always be this easy.

Look how the lines are respected. Fascinating.

Ah, it's all just random...

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Originally posted by mreiserer

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Originally posted by jimkane

Yes, and I find it is a key pattern to watch for in certain situations. This one was quite nice, and useful.

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Jim,

Could you elaborate on your statement? In which situations do you view the three-drives pattern as key?

Cheers

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When it is headed right into a PTA (never as a stand-alone setup), and when the proportion i.e. size in relation to the trend (into the PTA) and the layout, is in the proper balance. The latter I could show you easy one-on-one, but it is too hard here 'with the medium with which we are constrained' :-)

Thanks Jim.

The Russell has done one of my 'rocking chair' patterns, more or less, in here. This one is applied to a more standard ABCD and not the preferred 4-Point that I really discovered this on, but I still use a variation on standard ABCD's. If it plays out it will likely gap up tomorrow and run a bit. And yes, you actually could call the larger layout a 4-Point in spirit (a 'wave 2' 4-Point), with the 3 point (the C point if we think of a 4-Point as a degenerate ABCD) at a .685, and hence it has two rocking chair layouts on top of each other. This will be interesting.

Let me add one thing to this last post. This one rolled down more than usual, hence my comment 'more or less', forming a 'full' ABCD. Hence, the 'footrest' part of the chair is extended down further than usual, like when your feet hang off the end of a dock, or porch, or whatever. Point is, I can see the spirit of this, just like the spirit of the .685 4-Point. I only outline the set of 'rules' so everyone can see the concept. I'm not that formal when I apply it. I know one when I see one, and this is one.

P.S. By my charts, every one of the six 'key' turns on the 3-min today was just about dead off a line and Fib. It was truly amazing in my opinion.

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Originally posted by jimkane

Yeah, the KT rocking chair pattern failure setup. Sorry, I forgot to explain that one from before. Here's what I see. I have a big, very key pattern. I get the expected reaction off that, and it sells (in the case of a short pattern), usually to an expected spot. It then bounces up in the first correction of the new possible trend. So far, so good. It then rolls back over. Everything is on track at this point. But this is 'wave 3' supposedly, or 'wave 3 of wave 1'. This wave should accelerate. It stops somewhere near the previous swing, slightly above, below, or equal to it, and then starts back up. Although it is possible for this to be a 'wave 2 of wave 3', it's unlikely.

Now, here's the key for me. There is usually a very noticeable line right in here, not only over the recent peaks, but from before, usually the line the the setup was based on. It usually closes right here. Although it could roll right off this spot, it seems to gap or explode up. This price action is not in keeping with the setup and layout. It frequently looks like a rocking chair, but it needes the key line, and all based on a big setup with respect to the current swing sizes. Look back to that 4-Point and the other example I mentioned. Your example is a classic case. You have a 4-Point, it makes the outlined moves, right to the trendline, where it closes. Next day a big gap and run. The 'KT rocking chair pattern failure setup'. Nice work.

P.S. Show the downsloping set for the 4-Point, based on the previous 'wave 2' to see the line I was watching, and where this closed. Also, this pattern seems to work the best with 4-Points in my experience, but it applies anywhere it sets up. I'm still developing it.

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Here, for those of you that don't have the energy to go through 50 pages of posts looking for it. But in truth, you should have cut and pasted it in your notes. So, in fact, I'm doing what I'm not supposed to do, and 'enabling' everyone when I do this. Hmmm.

Now, don't anyone take this wrong, as I am not comparing anyone in here, and I would never put anyone down, but I am a probability guy, too, and if I had to make a bet, this is the side I'd take: I bet that Duane, T, Michael, Roofer, and a few others have this in their notes already. You all get the point.

This is a fantastic new pattern and price reading concept, one worthy of an entire new book if I wanted to write any more (I don't), along with my 'wave 4 bounce setup', which those who have read the members' archive or saw some of the notes from in here know is a lot more than just playing for a wave 4, or playing off a wave 4. It's a very specific set of conditions, like this setup, and worthy of another book. Too bad I just don't have any more books in me...

I may never get to quit here. Yes, that is also a very large bullish .685 4-Point CP at today's low, too. The one I was referring to starts at point 2 of the larger one, and is set up as Duane's favored 'wave 2' if that was the top last week.

thankyou duane i knew it was back there somewhere...