Trend Lines Consolidation Pattern
The Emini closed down 3.75 points at 1,508.50 on Monday. The chart above shows a triangle consolidation pattern is now forming. We have a descending trend line creating an upper boundary and a rising trend line making a lower boundary. The last bar on the chart has turned white, signalling this consolidation pattern.
All the trend lines on the chart are drawn automatically using some fancy TradeStation EasyLanguage code. The bars are colored red for an uptrend, green for a down trend (none on this chart) and white for consolidation. Note that the trend lines have been signaling an uptrend for the duration of this chart.
The Emini Composite Trend peaked 3 days ago and continues down. It is reading -52 on a scale of -100 to +100. Tomorrow’s CPI announcement may see us break out of this consolidation pattern.