Tuesday 1 May 2007

Hilbert Sine Wave and End of Trend Pattern

The Emini closed up 3.50 points at 1,492.75 on Tuesday. Large volume buying came in during the first hour and a half of trading and the Emini bounced off the rising trend line at 1,482. Check out the daily Emini chart below - remember all the trend lines are drawn automatically and not added after the fact.

Emini Trend Line Bounce Image

Going forward the 1,482 level will be critical. If we continue to trade above this level we are likely to see a Hilbert Sine Wave "Complete" pattern (similar to an Elliott Wave 5). This pattern is repeated again and again in every market and in every time frame.

First we get a Trend Break (either up or down). This is followed by a Pull Back in trend which then finally resolves with a "Complete" move. The end of February sequence is annotated on the chart below as well as the current Trend Break Up and today's Pull Back.

Emini Hilbert Sine Wave Complete Pattern Image