GKP

Could I ask what an Ending diagonal is..how its recognized and what it generally means... I am getting the hints but a clear definition would be great.

Looks like an inside bar formation today, could be the bottom of a trend or continuation after pause for breath!

Interesting to see which direction it takes.

screencast.com/t/vmsxnZDOC

Hope the file works as I'm a bit out of touch

Tom aka MD

Hey WS,

Just trying to match your chart to mine, and was wondering what points you are using to draw the bottom line of the ED?

Cheers
Woody

Hi remo,

I was referring to WaveSurfers ending diagonal, asking if this is indeed the pattern SP is following then SP will breakout when pinched by diagonal. I used SP of 70p just as an example of where that might happen.
My question was would the SP typically then be expected to move up very sharply after breakout from an ending diagonal.
Think Jackozy understood my gibberish and kindly answered. Thanks guys.

Yes, an ED is often followed by a strong move in the opposite direction but that's not a guarantee.

Whether 82p holds or there's a new low, 134-144p is going to be a big technical barrier going forward due to the high volume gap and multiple previous supports (now resistances).

I like WS' idea of an ED. There's certainly plenty of volume at these levels so that bodes well that a bottom is currently being put in. It's just the detail that's missing and nobody knows that for sure.

I have supports at 82p, 70p (gap), 64p (major), 52.75p (gap). Resistances at WS' 96/7p, 108/9p, 120p, 127p (important if 82p does hold), 134p (Fib), 138-144p (high volume gap).

hi count
im not certain what your question is?????

Count wrote: So even if not a 123 low and it transpires pattern is ED and let's say breakout then occurs around 70, it would be typically expected to be a very strong move upward?

Thanks