Hey Market Pilots,
In the continuing saga of this market pullback, as I have been writing about it every step of the way, the process has actually been rather orderly. In this write-up, I am switching to the QQQ because it has a clearer visual for what it is I am looking for.
On Monday, the QQQ moved down with pretty good force, putting continued fear and doubt into market participants. Then on Tuesday, there was a huge rally and the formation became clear- It was a perfect double bottom from last week to this week. I typically refer to the double bottom setup as an Elf Shoe because of how it looks and I find that people can understand an image better than a potentially misleading and overly exact concept of a double bottom.
The QQQ formed a perfect Elf Shoe on the hourly, but now I am seeing the beginning of one on the Daily time frame, which is great because when that time frame triggers, it will be more forceful and last longer.
In the image above, I have sketched out a rough idea of what I am expecting so you can get a sense of what to look for. This is not exact, and I am only trying to convey a general concept. I have been teaching this pattern in detail to my subscribers and those who took my class recently, which means that as they become more familiar with the education, they should be able to see things as I do and be better prepared for the twists and turns of the market. Essentially, I want us all to be reading the same book so we can follow along and make informed trades.
Let’s give it a few days to pan out, and then I will come back here with another screenshot to see how well the prediction and the results compare. It should be fun and I look forward to the unfolding of time with the pattern
Over and Out,
Your Profit Pilot.