Patterns 1(rise) and 2 (drop)

Pattern 1 is typically characterized by an upturn in the Stochastic Momentum Index (SMA), after a previous pattern 2. Pattern 2 is typically characterized by a mushiness in daily activity in the late stages of pattern 1 followed by a punch through of the 20DMA, often with ~ 3 significant down days in the course of ~ 5 days.

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