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) ?