Tic-Toc

No, not the movie clip kind; the clock-sound kind. The NQ & EQ futures have the possibility of making a further higher high. So far, they have refused to do so and have only moved sideways. Both futures charts can be counted with triangles on their two-hour time frames.

NQ Futures - 2 Hr - Triangle

There is a smaller version of the triangle that can be considered complete at iv. There is a larger version which could complete later in time. If either triangle plays out, it often signifies that the last up wave in the series is dead-ahead. If the NQ makes a barrier triangle, as above, then sometimes, the move out of the triangle is somewhat shorter than the usual technical triangle target of the largest width of the triangle added to the breakout point.

In the NQ, the triangle suggests that 18,000+ is do-able but not required. For now, though, we wait tic-toc inside the potential larger triangle. And, as the candle tails show, one wrong move and the triangle tends to move against the trader. And that why the expression arose, "trading in triangles can be treacherous".

Have a good start to the evening,

TraderJoe