A HOOK pattern will normally lead to a higher weekly close:- Friday
A HOOK pattern will normally occur from the 5-day lows on Wednesday"
S&P 500 Weekly and 5-day pattern.
Two day reversal in US markets on Monday and Tuesday and still trading above support levels in the higher timeframes.
There was a breakout on Tuesday therefore there was an expectation that price would push down into Wednesday’s lows.
Around Wednesday lows would often ‘revert’ into a higher daily close:- 1 day counter-trend day, which can often lead to a 3-day counter-trend day if a certain pattern occurs:- 'HOOK'
And a continuation towards the December highs
That higher daily close has failed to HOOK back above the key level @ 1098.
Because of this failure to HOOK, the next 2-days become random patterns using support and resistance levels in the 5-day pattern.
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