SPX: Is this a descending triangle?

Looks a lot like a descending triangle:

"The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.
For the descending triangle, the horizontal line represents demand that prevents the security from declining past a certain level. It is as if a large buy order has been placed at this level and it is taking a number of weeks or months to execute, thus preventing the price from declining further. Even though the price does not decline past this level, the reaction highs continue to decline. It is these lower highs that indicate increased selling pressure and give the descending triangle its bearish bias." LINK

Because of its shape, the pattern can also be referred to as a right-angle triangle.

• Lower Horizontal Line: At least 2 reaction lows are required to form the lower horizontal line. The lows do not have to be exact, but should be within reasonable proximity of each other. There should be some distance separating the lows and a reaction high between them.
• Upper Descending Trend line: At least two reaction highs are required to form the upper descending trend line. These reaction highs should be successively lower and there should be some distance between the highs.
• Duration: The length of the pattern can range from a few weeks to many months, with the average pattern lasting from 1-3 months.
• Volume: Confirmation is preferred but it is not always necessary. As the pattern develops, volume usually contracts. When the downside break occurs, there would ideally be an expansion of volume for confirmation.
• Return to Breakout: Sometimes there will be a return to breakout level (now newfound resistance) before the down move begins in earnest.
• Target: Once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and subtracting it from the resistance breakout.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=p51570748413&a=95529637&r=1935.png

The falling wedge resolves Tuesday/Wednesday. Watch the sky. (FF, snort)

Selecto, That is what I am talking about! Sharing information/knowledge. I have not looked at it like that yet. You gave me something to consider. Thanks. RD, I think your potential triangle would look better with the upper trendline drawn off the Jan 8-10th high....just my opinion though.. SL

I think your potential triangle would look better with the upper trendline drawn off the Jan 8-10th high....just my opinion though..

I like selecto's lines.

That 1320-1325 area looks important. Again...



The falling wedge is a bullish pattern LINK

• Contraction: The upper resistance line and lower support line converge to form a cone as the pattern matures. The reaction lows still penetrate the previous lows, but this penetration becomes shallower. Shallower lows indicate a decrease in selling pressure and create a lower support line with less negative slope than the upper resistance line.
• Resistance Break: Bullish confirmation of the pattern does not come until the resistance line is broken in convincing fashion. It is sometimes prudent to wait for a break above the previous reaction high for further confirmation. Once resistance is broken, there can sometimes be a correction to test the newfound support level.

Edited by Rogerdodger, 15 March 2008 - 05:42 PM.

iz this wut ya'll talkin bout? 1363?

Edited by SemiBizz, 15 March 2008 - 06:04 PM.