Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Friday, December 19, 2008

Ascneding and descending triangles

this is for tony, who doesn't understand how fast I have to type this stuff up as I try and trade while orating on "Chart Astrology"

So you look at that pattern(above), and what does Brian Shannon say "The more times support is tested the more likely it is to break. that Pink line was tested 3 times(rule of 3's) and then breaks. The descending resistance(red line) bounces lower and lower each time. this is similar to how a "cup and handle" form. It as well is an Ascending or descending triangle.
Here is yet another one(Above), this one breaks down, then pops back up above resistance.

This is a rising wedge(Above).... You have to remember "Day one Lesson One" of geometry, Every line is made up of more than 1 point in a row. (brian says, The more points the more valid the trend line). So, Above illustrates a Bear flag, in the form of a wedge. This is the same pattern only I show how One could think it's an "Ascening triangle", but it's missing support.

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