Here is an interesting story. While writing the topic above I was thinking about what chart to show this weekend. Then I noticed that the second date is a palindrome or in some way it is 'symmetrical'. Then I recalled Jim saying that sometimes ABCDs like to be symmetrical around certain point. Then I started digging and ended up with the following chart:





We may see that the BC leg of our current bearish ABCD, which was an ABCD itself was perfectly centered both in price and in time around its 'hub of the wheel' point on August 17th at around 1082 level.
To share the same characteristic the big ABCD should end on September 29th at around 1162 level. What's more interesting - this point is pretty well justified geometrically. Very curious.

Originally posted by jimkane

... Now let's see if it can take out this TL and give an upside breakout signal to the 'suckers'. I'd expect it would most likely set a big trap in here...

Isn't this exactly what is happening here?

And yes, I'm on the bear side right now.

Yes, jarek, that's the trap I was referring to, and expounding on a bit in the post right before your chart.

You were faster again 2:0 for you today

So, what's the strategy to be on the short side off the trap? If I'm already long, and thinking I want to ride until close, why would I go to the short side? If I think a trap is going to be sprung, and that there is some reasonable potential they may sell it down hard, I can get to the short side as it rolls. I have the Kane Zone area to watch to see if they seem like they will pick it back up, or forsake it. I have an early clue spot. This allows me to perhaps be up a little, and be given information as to how likely my premise is to play out. That way I can get out maybe near a scratch, and even get back on the long side if I wanted. And if it tanks, really hits the toboggan slide, I'm in.

The downside is giving up a long position and maybe not being able to get back in. Why might I do this? One reason would be that I don't think I would want to sit through the games and the possible drop associated with that, hence I want to get out regardless. If I see a way to position for the initial game such that maybe I can scratch if there is no follow through, I may want to take that shot. It's just a combination of factors that leads me to see this approach as a reasonable one for a layout like this. It is based on what I see as a very high probability for games to be played in a somewhat predictable manner at this spot.

And BTW this is my original bullish green set from few hours ago:





Isn't this remarkable??

Yes, it is.

Okay, get ready for the big dump after this little .447 bounce. If the Kane Zone is to be taken out (notice how it stopped the drop dead in its tracks), it really should be now.

Very interesting, it hasn't taken the low out. The Kane Zone stopped it dead, and it can't get below it. If not, it may explode up.

Thar she blows! Staying short side bias, but watching this area here where a 'pseudo-ABCD' forms (pseudo because the C point is a .447, and BC is poorly defined). It needs to 'W3' me here to keep me interested.

Actually, in reviewing it, that BC is an ABCD, so it isn't that poorly defined, it's just very shallow. Regardless, be cautious here at the ABCD area, as that may be it.

Thanks Jim. Have a good weekend!