I had a quick look at Suri Duddella’s website and notice that he is identifying many potential bearish gartley Fibonacci patterns on some important stocks. These also appear to have formed in many indices as well. The patterns on a number of stocks and indices as shown on his website seem to indicate some type of correction is due soon.

Larry Pesavento also uses these patterns which are constructed using specific Fibonacci ratios and then connecting corresponding lines that ultimately forms these patterns when connected to price highs and lows.

Figuring out how to draw these patterns and identify them on price charts correctly is definitely something that will have to go on my to do list. They have the potential of being very precise and when completed can lead to significant moves. The patterns can also fail of course and my understanding is that they fail when price moves a certain degree beyond the last Fibonacci ratio price high.

Suri, if you are out there would be so kind as to post a comment here and tell us if the patterns you have drawn on your website are pointing to possible significant corrections on some major indices very soon (ie. QQQQ or DIA) ?

see http://www.traderslog.com/gartley-pattern/

seems that this pattern can be used at both bottom and tops

As I mentioned previously, I also use Fibonacci patterns as one of my technical tools.

I have had a PhD in math program my computer for the math. I have a BS in math and psychology but too rusty to do the math myself.

As I also mentioned my Fibonacci patterns formed for what appeared as a pretty big correction, but last week the #s seemed to fail for some of the majors, which among other indicators led me to believe that the Fibs exceeding the correction #s signaled instead a breakout. I would be interested, as a check, to see what Suri has as his #s on the DIA too.

I emailed Suri and asked him to comment here. Crossing my fingers he has the time to do so ….

JR you could do some guest postings here at my blog show casing your Fib Patterns if you feel like it. Do you know how to construct the popular patterns, gartleys butterfly’s etc. ? Would be awesome if you could write something up 🙂

Hi Tom,

Thanks for your email and request…

Most indexes and some of the sector charts are exhibiting

bearish Butterfly/Gartley patterns. My target for SPX is

1230-1250… For the past few sessions, SPX is showing

some signs of weakness.

Here is the link for SPX and SPY Charts

http://www.surinotes.com/img/SPX_Nov0910.gif

http://www.surinotes.com/img/SPY_Nov910.gif

Regards,

Suri Duddella

http://www.suriNotes.com

Hi JR,

Here is DIA Chart.

http://www.surinotes.com/img/DIA_Nov910.gif

Regards,

Suri