Wednesday, February 9, 2011

Update: $Rifin Inverse Pattern Bottoms/Tops

My cycle analysis indicates that I should closely compare the current topping pattern in financials with the bottoming pattern at the end of August 2010.  The patterns should mirror each other. 

The bottom at the end of August 2010 was a triple bottom for $Rifin.  This time the topping process is sloped upwards as shown with the regression channel.  The 3 required tops are in place now as shown in the first chart.  The pattern indicates that a shoulder still needs to form to be comparable with August 2010.  So the index should decline some more and then watch for a final shoulder. 

After the shoulder has completed, then the cycle predicts the start of a massive decline for financial markets.       

30min Chart

Daily Chart


  1. I see you have 1-2-3-4-5 in the contracting triangle. Is that an Elliot Wave method?

    Thanks in advance

  2. No, not Elliot Wave. Good question though, and I should really use a different numbering system to avoid confusion.

    This is just a numbering method for a pattern of tops and bottoms. The Elliot Wave model with numbering is shown on the white chart in the comments dated Tuesday, February 1, 2011.