http://afraidtotrade.disqus.com/Helping traders overcome fears and emotions in tradingenFri, 06 Nov 2009 22:34:35 -0000http://blog.afraidtotrade.com/goldman-sachs-gs-threatens-to-form-cradle-sell-signal/#comment-22079746<p>Great chart Corey - could we also get your view of the daily / weekly charts for India's Nifty .. is this current move down a correction and where can this go to - really appreciate your thoughts !!</p>AS2009Fri, 06 Nov 2009 22:34:35 -0000http://blog.afraidtotrade.com/goldman-sachs-gs-threatens-to-form-cradle-sell-signal/#comment-22073914<p>Seems like the two time frames and respective moving averages create a squeeze of sorts, where price is trapped and likely to trade in a narrowed range until one side wins out.</p><p>Wouldn't the longer term weekly moving average carry greater weight; a dominant level of support?</p><p>I wonder if such a squeeze is similar to a consolidating triangle, where tension and potential energy build and then price ejects violently?</p><p>Also, there are certian to be stop losses on either side of the moving averages; any break in either direction would be magnified by covering and those scrambling to get on the right side of the move.</p>BobFri, 06 Nov 2009 20:42:41 -0000