By Gary Holland
I’m not usually a fan of chart pattern analogies and on the occasions I have been in the past I’ve found that
as soon as I share them with anyone they end up going kerplunk!
I will note that Paul Tudor Jones made his mark back in 1987 by following a chart pattern analogy which
helped him score big during the 1987 equity market crash. If you can find it online I’d suggest having a look
at the 1987 documentary on Paul Tudor Jones called “Trader” and you’ll see what I’m talking about.
Back to the present day – I first cottoned onto this analogy after we saw the 2018 orange asterisk high and
noticed the similarities between it and the orange asterisked high from late 2007. One similarity is that both
the 2007 and 2018 orange asterisked high marked 61.8% retracements of the preceding sell-off.
If you follow the colored asterisks you can see how I think the analogy has continued to play out even
down to the Monday morning gap up opening both 2007 (24 Dec) and 2018 (3 Dec) saw in order to make
the purple asterisked high. You’ll also note that in both cases this gap was filled in short order.
In order for it to continue to hold true there is little room for any upside from present levels before the
downside should resume in earnest – Let’s see if I’ve put (as us Aussies say) the ‘Mocker’ on this
https://www.phrases.org.uk/meanings/put-the-mockers-on.html or whether the analogy will continue.