The Big Repeat Pattern to Plan the Next Swing April 5

What can late 2015 tell us about early 2016?  A lot, if the larger price pattern repeats.

Let’s update our pattern recognition skills and plan the future – if the pattern continues as it has done.

As I’ve been highlighting repeatedly and joyfully to Afraid to Trade Members, the market is playing out a “Repeat Pattern” like that of late 2015.

In simple terms, the pattern begins with a large down-swing (collapse), progresses to a “Dead Cat Bounce” rally, moves to a retest of the prior low, and then bursts into a huge, multi-week rally.

We’ve used this pattern as our template ever since the January collapse and the successful “Dead Cat Bounce.”

All has played out nicely in the “Price Pathway” from the pattern.

IF history repeats and IF the pattern continues to guide the market, THEN the next likely swing in the pattern will again be a retracement to the downside.

In November 2015, price pulled back from the 2,120 target level; in 2016 price is pulling back from the 2,070 level.

Whatever other analysis or indicators you’re using, note the pattern, use it as a template, and adapt to the future which could be yet another pullback away from resistance as a potential fifth phase in the pattern begins.

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).