Noticed this interesting pattern today. I'm focusing strictly on a 2 week trend and the cloud in this analysis.
1. Yellow box: Tight consolidation pattern coming off the back of a spike.
2. Purple box: Steady downtrend for about 4-5 days.
3. Pink circle: Testing the bottom of the cloud.
4. Yellow box: Another tight consolidation coming off the back of the downtrend.
5. Blue box: Upward momentum bursting through the top of the cloud, followed by some sideways movement before the next spike and cycle.
Where we're at now, we just reached the "Pink Circle" stage. If this plays out like it did around the new year, we'll see some tight consolidation followed by a rise bursting through the cloud.
Will history repeat itself? It will be interesting to find out! I might try to get in if we move into the yellow box of consolidation again.