friday thread, page-57

"Looking at the DJIA, it looks like a massive Ascending tri"


Selmax - Open for debate on this, but... My understanding is that triangles are usually right-angle. Defined by equal highs.

This pattern you refer to on DOW and SPX is actually a rising wedge [higher highs, higher lows] which is possibly a massive continuation pattern.

See Incredible Charts Ref Dictionary.

http://www.incrediblecharts.com/technical/triangles_and_wedges.php#Ascending_Triangle

Ascending Triangle

An ascending triangle is formed by equal highs and higher lows . It is a bullish signal, whether encountered in an up- or down-trend. It is most often observed as a continuation pattern in an up-trend but is a strong reversal signal when witnessed in a down-trend.

Rising Wedge

A rising wedge is formed by higher highs and higher lows. A bearish signal, the pattern is normally a continuation signal in a down-trend but acts as a reversal signal when encountered in an up-trend.