Thursday, March 11, 2010

ECU - Pattern Analysis

The Golden Phight posted (Pattern Analysis 101) some interesting charts illustrating the point that stock charts are not random but do indeed follow patterns - like all things in nature. The ECU chart comparision to the GOLD 1970's chart is a good example that illustrates fractal patterns. Basically a fractal pattern is a large pattern that is composed of the same base pattern repeated many times on many scales.

Here's Golden Phight's Charts:

GOLD 1970's

 ECU Daily Chart

Now let's step back and take a look at a monthly ECU chart:


  1. The ECU daily chart pattern from 09/2009-present and the ECU monthly chart pattern from 2002-present resembles GOLD's chart pattern 1973- early 1976
    • One interpretation of the patten is implying another leg down for ECU before a major upside move?
    • Another interpretation is that ECU is currently matching late 1976, and ECU is about to blast off?
  2. ECU diverged from GOLD and XAU in 2006
  3. The TRIX momentum indicator is flattening and starting to turn up on the big picture ...
We'll find out soon what happens to this one.

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