BarroMetrics Views: A Blogger’s Paradise
I started this blog to help readers of Nature of Trends (NOT) understand my ideas and to gain greater insight on how I applied the concept. Of course, my objective has expanded over time. Nevertheless, my original aim is still the main one.
Now, I don’t always find it easy to write a daily blog – sometimes ideas are hard to come by. But sometimes, the market provides an opportunity I can only describe as a ‘blogger’s paradise’. Last night, the S&P provided such an opportunity. Let me start the blog by explaining to the non-readers of NOT that the foundations of my plan’s technical approach are:
- A variation of the Elliott Wave, an objective version, I call the Ray Wave
- The ideas and principles of Richard Wyckoff.
- Pete Steidlmayer’s Market Profile. And while Pete Steidlmayer would probably not agree, I see his Market Profile as an extension of Wyckoff’s ideas.
- One of the common elements of Wyckoff and the Profile are the concepts and strategies around the relationship of price direction, price range and volume. Market Delta has added a dimension to the analysis by classifying real-time volume as being buyer or seller control.
- To these ideas I have added the Barros Swing and
- Finally you have traditional technical analysis (Edwards and McGee patterns) and traditional candlestick principles
That completes the elements of my approach. Let’s now turn to the S&P.
The first pattern I want to show you is found in Figure 1: the monthly chart of the S&P. This is the pattern that is controlling current price action and is a pattern is that Peter Steidlmayer called a ‘313 Outside’. The elements of the Pattern are:
- A sideways market (313)
- The breach of an extreme in the direction of the original direction move (trend) and
- Failure to follow through on the break.
- This calls for a move to at least the Primary Sell Zone.
In Figure 1 the prior 12-M Barros Swing trend (Yearly Trend) was up. At 666.80, the S&P took out the low at 768.65 but failed to continue South. Instead we saw the S&P return into congestion. This price action provides a highly probable move to the Primary Sell Zone at 1577 to 1476.
FIGURE 1 12-Month S&P