Sunday, January 29, 2012

ES Futures - Descending Triangle Formation 01/27/12

Technical traders usually look at the descending triangle formation as a continuation pattern. However, on Friday, we got a reversal on the 5-minute chart. The market found support on the 10-day moving average and just above S1. Following the break of the descending triangle, the market gave us a symmetrical three-wave move to the upside. The three waves are called "The Initial Swing Wave - Correction Wave - Final Impulse Wave", which are the names given to this A-B-C wave formation by Tony Plummber.


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