triangles, page-16

dmauff: " ..... what determines whether it is going up or down after a triangle is formed?"

Here is some clarification on triangle breakout directions:
page 13-18, Triangles and Pennants ...

http://www.ag.ndsu.nodak.edu/aginfo/cropmkt/analysis/techHO.pdf

The graphics in the .pdf file depict the triangle types.

Descending Triangle. Break out tends to be
to downside.

Ascending triangle. Break out tends to be
to the upside.

Symetrical triangle. Break out tends to be in the direction when entered the triangle.

Pennants are:
1. 60 to 70% reliable.
2. Without basis for projection -- tend to
move out the way the market was moving
coming into the pennant.

PCL had a descending triangle Jan-Feb, which did not follow the directional rules above .... it broke out on the upside instead of the downside.

The recent PCL March triangle was symetrical, and did follow the breakout rule .... i.e. break out tends to be in the direction when entered the triangle.

.... Paradox