How Many Triangles Can You Find?
- Posted by JC Parets
- on November 13th, 2011
As I go through my charts, all I see are Symmetrical Triangles. They’re everywhere. Some might call them pennants, or coils, or a wedge. You can call it whatever you want. The best part of this whole thing is that it doesn’t matter what it’s called. What matters is what it means.
When I see these sort of converging trendlines after a big move, I look at it as a temporary pause in the overall move. More often than not, these consolidations resolve themselves in the direction of the underlying trend. In this case, the trend is clearly up.
Here is John Murphy’s take:
“The Symmetrical Triangle (or the coil) is usually a continuation pattern. It represents a pause in the existing trend after which the original trend is resumed…..(if the prior trend was up) the percentages favor resolution of the triangular consolidation on the upside. If the trend had been down, then the symmetrical triangle would have bearish implications”
Chart by chart, I keep seeing it:
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- Here’s Why Energy Will Outperform Going Forward
- The Problem Now Is The Overhead Supply
- This Bullish Base In Cotton Is Almost Complete
- Is This Why The S&P500 Stopped Going Up?
- How Low Is Apple Going To Go?
- The Dow Jones Industrial Average And Its 200 Day Moving Average
- It’s Almost Time To Buy Crude Oil Again
- Is Healthcare Due For A Collapse?
- Are Emerging Markets In Trouble?
- A Look At The Euro From The Top/Down
Archive by Year