An algo on the loose
The pattern noted above, and some minor variations of it, are noticeable throughout the history of this market’s price history. I first noticed it while using BBands but removed them for this post because it’s far too busy looking with the extra lines.
Anatomy of the algo
After a bear market push a Head & Shoulders pattern develops as it bounces from the Lower BBand up-and-through the Upper BBand (not seen for reasons noted above). That is followed by a double top (2 pushes) with 2 strong retraces. Variations of the algo are more present on the 3rd push towards highs. The volume profile tends to echo the price action as well.
Currently there is wonky Head & Shoulders in the works with the price recently bouncing off the Lower BBand. History of the algo would suggest a bit of consolidation before picking a direction for a new measured move.