Look Where QQQ Paused

QQQ has Broken Out of Its Red Topping Megaphone and is Paused at the Navy Megaphone VWAP

QQQ has Broken Out of Its Red Topping Megaphone and is Paused at the Navy Megaphone VWAP

QQQ has broken out of a topping megaphone (red) on the top of a larger megaphone (navy blue) and is now paused at the navy blue megaphone VWAP.

Because QQQ broke through the navy blue megaphone top to form a topping pattern, and because there’s a Neely set-up for a deep retrace of the move out of the August 2015 crash low, QQQ should go for the navy blue megaphone bottom.

QQQ should Bounce at Roughly the Red Rising Wedge Bottom to Retest the Navy Blue Megaphone VWAP Before a Breakout Downwards to the Red Wedge Bottom

QQQ should Bounce at Roughly the Red Rising Wedge Bottom to Retest the Navy Blue Megaphone VWAP Before a Breakout Downwards to the Red Wedge Bottom

QQQ should bounce off the bottom of the red rising wedge and navy blue megaphone bottom to retest the navy blue megaphone VWAP before continuing down to the critical decision point at the red wedge bottom.

If QQQ has a genuine breakdown through 100, next target is roughly 70.

3 Comments (To enlarge images, right click on image & then click "view image") → Look Where QQQ Paused

  1. IDA

    Hi Moe QQQ has gone back up to 140,5 (futures has gone above it this morning) , and so this scenario is still possibile as long as QQQ stays below the red megaphone VWAP? (at this level that is)

    Reply
    1. Trader-Moe

      IDA, yes, unless QQQ truly breaks out through that red megaphone VWAP, the green scenario is still live.

      A breakout thru VWAP would mean we’re still in the red megaphone for a while.

      We need a breakdown thru the navy megaphone VWAP to start a larger move down.

      Reply

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