10 replies to this topic

[mss]

mss

[hiker]

lower highs mean more than higher lows? or is it simply a trading range between 1404 and 1484 until....? mss...you think there is reliability to the triangle pattern being seen by some...is it tradable with any confidence? and which direction?

Edited by hiker, 12 September 2007 - 09:19 AM.

[mss]

There are only two triangle patterns, IMO, at the present. Like any pattern, they are very reliable until they are broken. TL, pivots, channels, fib #, etc. But for me triangles have more valid boundries, till broken.
The chart below shows what I see. The horz. are pivot points and the intersection of the triangle and upper pivot is very meaningful, if a upside breakout, or failure. IMO the RED line should give us an early clue.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=p61289556629&a=116507500&r=3289.png
Those are closing prices, and the current point is assumed to be closeing as it updates.
mss

[securelstmile]

Do you use triangles on the internals as well? I am just curious if you think the internal break outs of triangles is a precursor to price action. I have used this with the rsi and have found it somewhat useful. I think I learned it here but forget who used it maybe it was Tea or you mss.

[mss]

....... maybe it was Tea or you mss.

...Yes on the price action question.

We both use triangles very often. I also use indicators on indicators at times, and so does Tea.

Edited by mss, 12 September 2007 - 10:05 AM.

[securelstmile]

Got it thanks. So much superior learning it is hard to give credit where credit is due.

[mss]

To further the reason I like triangles when they develope, is they have a time limit. Have added a GREEN line to form a up-slanting channel (blue & green). Interpetation, bear flag or a bull channel ONLY a break or not at some, as yet undefined time, will answer that question. Yes I trade channels, IF no triangle is appearent. fwiw.

[securelstmile]

Thanks, yes I see. Your thoughts are always helpful.

[iloli way]

There are only two triangle patterns, IMO, at the present. Like any pattern, they are very reliable until they are broken. TL, pivots, channels, fib #, etc. But for me triangles have more valid boundries, till broken.
The chart below shows what I see. The horz. are pivot points and the intersection of the triangle and upper pivot is very meaningful, if a upside breakout, or failure. IMO the RED line should give us an early clue.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=p61289556629&a=116507500&r=3289.png
Those are closing prices, and the current point is assumed to be closeing as it updates.
mss

mss, I am new here, however, have followed and enjoyed your great charting ability for awhile, I really respect you. Charting is always about looking back. Had we draw a dotted RED line from same July high thru Aug 24 high and down, can we say the actions since late Aug already broke that RED line? Consequently, price bounced exactly off that line, a support now, on Sept 10? Similarly, we could draw the top triangle BLUE line thru Aug 24 top, and that TRIANGLE was also had a breakout at late Aug? Question here maybe this, if we keep drawing new triangles after price rises, when will it become un-reliable? Thanks!

[mss]

Question here maybe this, if we keep drawing new triangles after price rises, when will it become un-reliable?

They dont become un-reliable, any more than other types of trend lines.
You are talking TIME differences. Lets take a sequence.

[attachment=5948:attachment] CLICK TO ENLARGE

PURPLE CHANNEL - a break, a failed test a re-break

RED CHANNEL - no second point yet (posted charts with this pattern)

ADJUST CHANNEL - ?? maybe triangle forming, second point appears

BLUE DASHED - does not show me much, idea

BLUE SOLID - red dashed goes to blue also all other lines get changed to chart you are reviewing.

When we get a break, that changes the view, I will redraw what I see. All Trend lines, no matter what they are based on are time related. Fib#, channels, triangles, pivot lines, gann angles etc.

Hope this answers all your questions.
mss