Hi Jack, The ascending and descending triangles are pretty reliable. The market made an early move that proved to be a false breakout. I thought that it might prove to be a pattern failure, with prices then reversing lower. It wasn't, it was a valid pattern with an upside breakout. Chart readers might want to wait until there was a breakout by a few points to confirm the pattern, then buy. If they did this, they were looking at a loss as the market turned lower. It found support and went on to a valid breakout later.
Steve
ReplyDeleteWhen you say suck them in, are you referencing the markets trying to get the shorts to sell there positions?
Jack C
Hi Jack,
ReplyDeleteThe ascending and descending triangles are pretty reliable. The market made an early move that proved to be a false breakout. I thought that it might prove to be a pattern failure, with prices then reversing lower. It wasn't, it was a valid pattern with an upside breakout. Chart readers might want to wait until there was a breakout by a few points to confirm the pattern, then buy. If they did this, they were looking at a loss as the market turned lower. It found support and went on to a valid breakout later.