short term trading week starting - 15 oct, page-141

V8, here is what I call a Saddle formation others may have a differnt name for it.

Just did a search online for it but did not find a ref to it which is quite surprising Perhaps its generally known by another name but its what I it was called when I 1st learnt about it.

Fairly reliable pattern especially in bull markets or bullish moves on a stock. It occurs after a steep spike the share price which then retraces quite sharply but not the whole way back to the start of the leg of rally and then forms a ascending triangle at the base of the retracement area... You buy on break of the upper edge of that lower ascending triangle and can project out 2 targets

1. The Extention of the triable as normal for a triangle
2. The Extension out from the Top of the Spike to double height of the retracement (if it breaks above the oringinal spike).

Often forms in clusters or a Saddle within a Saddle or within Larger triangle.


Example on the SIR chart below looked much clearer on a hourly chart but you should get the idea. It turned out to be inside a larger traingle.