Mistake in observation of Volume chart.
But wonderful observation made to complement Stage Analysis transition from Stage 4 to Stage 1 and Stage 2.
Scenario:
Stage 3 happened last week Friday prior to close.
Then transition to STage 4 happened.
Small pullback observed but then resumption again of Stage 4.
These are clear from the basic Stage Analysis.
Then extreme were reached. Followed by a sharp rebound.
This rebound was shortlived however and market started to look choppy.
Main MA momentum slowed down with faster MA chopping up and down.
This was where my comments were made earlier. The comment which was a mistake in VOlume Chart.
Because moments later, the main MA start to flatten and there was a triangle pattern to be seen.
Thereafter one could mistaken as a breakout but the pullback could have been lethal.
After the triangle, it traded in a rectangle and can even be classified as a form of Darvas Box.
Faster MA crisscrossed the Main MA.
However, Stage 2 could be detected in this rectangle when rising main MA flattens once more and the faster MA cross upwards backed by momentum indicators.
Wonderful sight. Truly, wonderful sight.
Showed how pattern study should be flexible and how the Stage Analysis works in ES.
Remarkable
