Error of judgement

I was monitoring the STI during the recent days and noted that the correction that I certain would be here in fact did not arrive. I looked through my last entry and noted that the 1,962 destination was base on the assumption that the head and shoulder completion. In fact base on the previous set up, the STI would have broken the neckline and by right should be heading south now.

It did not happened. Instead STI broke the resistance line and headed North. Thus I have to re-examine where I went wrong on the chart reading.



Fig 1 STI Daily chart

As I moved my observation from weekly to a daily chart (fig 1), I have realized that STI has completed a Triangle and broken up-wards with a minimum objective of 2,503! I have made 2 errors here:

1) I have concentrated my reading on weekly chart alone. The advantage of doing so was reducing the noises. However, at the same time, it reduces the smaller details;

2) I was so certain of the head and shoulder completion (on daily chart) that it blinded me. Thus I was notable to see the triangle till it is too late.

Good thing that I am not seeing the same thing in my other charts yet. Rather, the whole set up made me doubt myself, "How can STI go down when the stocks are moving up?" So here is the answer for me now. So base on the latest set up, if I retreat to the weekly chart, a more probable set up would be a flag with objective 2,731.