Ending Diagonal

Ending Diagonal SPX

The Market set up very nice for a reversal Monday with a terminating signal at the end of the C wave and the top of wave 2 with a potential of very nasty and long downward wave 3 to begin.

We could see a bit of an overthrow at the open to touch the top of the rising bear wedge ....stops should be placed above the resistance zone ....if it gets above there this is not an ABC retracement but a possible resumption of the larger up trend.


http://neboxian.blogspot.com/2008/08/triangle-reversal-pattern-part-3-of-3.html

Here is a Video I made on reversal triangles the Technical term for them is Ending Diagonal but I try to use more generic terms ...What is Important is to get an understanding of the basic concept.
http://neboxian.blogspot.com/2009/07/markit-tao-thurs-7-23-09.html
Here is an example of an ending diagonal Failure..... that's why I encourage stops.....if ED's fail they are very explosive... and if ED'S work they are as equally successful.....