Thursday 28 August 2008

Emini Trend Line Break

The Emini closed up 15.25 points at 1,298.00 today. We got the trend line break expected from yesterday's post, as well as the opening gap. The market has now risen 26.50 points since Tuesday's post about cyclical lows in multiple time frames.

Emini Trend Line Image

Trend Line Break (Emini 135 minute)

The chart below is quite cluttered but very useful if you own the Better Sine Wave. This pattern repeats itself again and again, in all time frames:

The market breaks out into a trend move
The move reaches an initial exhaustion point and then retraces (Pull Back - "PB")
Then there is a final push in the direction of the original trend
Ending in complete exhaustion (End of Trend - "END")
Cyclical activity resumes until another trend move develops

Emini Hilbert Sine Wave Image

Trend Patterns (Emini 15 minute)

The chart above shows the last 4 complete trend patterns. We've had a break into a new up trend and I'm now waiting for a Pull Back for re-entry. There was large "churning" volume traded at the end of today, suggesting some profit taking.

Remember these "End of Trend" signals often coincide with cyclical turning points in the time frame (2 times) above - in this case 135 minute (15 x 3 x 3 = 135). Watch out for these if you're using the Better Sine Wave.

Good luck with your Emini trading.