The $IWM Superstructure

It’s always bugged me that the Russell was able to breach its downtrend line several times, but then also fail several times after doing so.

And, in the end, looking at the whole thing that has developed, it is shaping up to look a lot like a giant triangle, and this should be a continuation pattern, I would think.

I have noted target where we may find equal legs.

IWM

Now, that said, if it is a triangle, it doesn’t have to be a continuation pattern. They usually are, but not always. And, this gives us a convenient stop, mental or otherwise. If it goes above the upper green trend line, i would become suspicious of this interpretation.


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