$RDW - Twin Towers Bearish Pattern Explained - Video and Transcript
The Twin Tower Pattern is when stocks in the market suddenly spike up with smaller wicks on the top, creating a bearish pattern, then falling down again. This informational video discusses what the pattern looks like when you see it in the charts. $RDW is Redwire Corporation. A transcript appears below.
This is a video on the chart pattern we call the Twin Towers. Tyler actually came up with the name, and it's been very successful for us. It's quite a reliable pattern. Better than 70%. What it's in reference to is the...Twin Towers in New York. When you see that, then the rest...[When] we see this type of pattern, it's bearish, and we would expect things to continue to sell off and fall down.
This morning, $RDW in the pre-market was quite strong. And then at the opening sold off and then made the strong move up 1, 2, 3, 4, 5 way move up. But look at this pattern here. This is what we call the Twin Towers. You get a big spike up. You have a couple of these small wicks on the top. Call them antennas, but they're a double top.
And this happens to be, in this case, the two-minute chart. The one-minute chart is not quite as...these two candles should be together, so it really shows up better on the two-minute chart. And that's what I trade. So ... it's either a same-size or an engulfing bearish bar like this.
So you get a big spike up, a couple of these wicks at the top, and then a sell-off back all the way down the length of the first tower, second tower. And when you see that, you would expect then the market to continue to sell off. Now, in this case, it did trade sideways for a bit...and tried a couple of fake-out break-outs, but it couldn't get back up through this 6.50 resistance level and then failed to hold the support at 6.30. Now it's in this down-trending channel. So this was the big blow-off. This was probably being traded by some of the chat rooms. And once you see this and that's their blow-off, everybody's gone home now. There's nobody left to hold support for this, just the bag holders, thinking that it may pop or go again -- pop or go again. Now it's just going to drift off. It's in this big down trending channel. [It] probably trades back down to five-and-three-quarters, maybe 5.50. Eventually, if they come back at it again, it could take another pop, but for now, this is the backside of the move and probably not going to go anywhere.
So this is the pattern right here. Tyler's Twin Tower pattern.
