Simple's Green Room

[pennies2007]

Yep, agreed. Those TDI patterns are pretty reliable in predicting price action movements. It's the only indicator I've ever found that's useful for things like pattern evolution.

In this case, the first part of the triangle drop off the top trend line results during consolidation. Then, the second half occurs during the high volume sell offs during the first part of the day. I expect to see the same thing occur again on this last leg down. Basically, the TDI will form a 3 wave pattern to the downside. The bounce in between will allow the consolidation to complete before the selling kicks in again.

The price action is following a drop, base, drop formation for the time being.