Hi Karma, I hope your eye is going to be OK - have to be able to see your trading screen! While the triangles were just something I used to identify a pattern, having reviewed them since I've found them to be quite useful as an interpretive tool. The reason being, just like speed angles which are simple arrows indicating a price movement, the angled side of the triangle gives that same information. But the vertical side and the horizontal side can each of themselves also give some information as well. If the speed angle doesnt always fit each price movement exactly, you can use the other two sides to determine what it is that repeats consistently as a pattern and what is inconsistent.
In the case of this chart, the horizontal side representing the period of the pattern has been very consistent, while the vertical side has been less so. Cycles 2 & 3 have almost exactly the same height, but the 1st cycle is lower. This could be explained for example by the fact that the price stopped pretty close to the previous high a month earlier (also shown on the same chart), which represented resistance to that surge at the time.
Of course thats only my interpretation, and another chartist could look at it completely differently - the beauty of TA I suppose! I hope that helps. Cheers, Sharks.
BLY Price at posting:
$3.10 Sentiment: LT Buy Disclosure: Held
