As a Forex Trader who lives in the United States and trades many USD based pairs I frequently refer to multiple indexes that represent the possible strength and trends of the Dollar.
I would like to share this post for the spectators and students of the markets.
The chart on the left is a 2-Week chart representing a four year uptrend of the S & P 500.
The chart on the left formed a double top pattern (two mountain tops) which is a classic pattern that forms when a bullish run is most likely over. After that pattern we saw roughly a 50% drop throughout the entire year of 2008.
Now, fast forward to 2018 and we are currently reaching what looks like to be the beginning of another double top, or mountain formation, it will most likely take another year or two to complete. But, by year 2020 ish we will potentially be looking at a massive drop again. However, my prediction is that this drop will last 1-2 years because this uptrend has been going on for longer then the first one, almost a full decade!
The diagonal trend line is our Bullish support. When/if that gets broken like it did before. The drop should begin to take place!
Always look at the bigger picture! Invest wisely.
Happy Holidays!
I would like to share this post for the spectators and students of the markets.
The chart on the left is a 2-Week chart representing a four year uptrend of the S & P 500.
The chart on the left formed a double top pattern (two mountain tops) which is a classic pattern that forms when a bullish run is most likely over. After that pattern we saw roughly a 50% drop throughout the entire year of 2008.
Now, fast forward to 2018 and we are currently reaching what looks like to be the beginning of another double top, or mountain formation, it will most likely take another year or two to complete. But, by year 2020 ish we will potentially be looking at a massive drop again. However, my prediction is that this drop will last 1-2 years because this uptrend has been going on for longer then the first one, almost a full decade!
The diagonal trend line is our Bullish support. When/if that gets broken like it did before. The drop should begin to take place!
Always look at the bigger picture! Invest wisely.
Happy Holidays!