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Chip,
Thanks I understand your description.
Dr. Roffey,
Care to explain the difference between the wedge & triangle.
Harley
Dr C. Roffey wrote:
> A rising wedge is certainly NOT a continuation pattern. It is the most
>
> vicious of all reversal patterns. You are confusing the rising wedge
> with a
> rising triangle. The normal rising wedge wipes out at least the whole
> of
> the wedge gains in about one third of the time taken to form the
> wedge.
>
> ----------
> > From: Chip Anderson <chipamy@xxxxxxxxx>
> > To: meyer@xxxxxxxxxxx; Dr C. Roffey <roffey@xxxxxxxxxxxxxx>
> > Cc: metastock-list@xxxxxxxxxxxxx
> > Subject: Re: Dow Jones et al
> > Date: Thursday, December 04, 1997 6:06 PM
> >
> > Hi Harley,
> >
> > A rising wedge is a triangle pattern formed when an up-trendline
> > (drawn by connecting successive bottoms) intersects (or appears like
>
> > it will intersect) a trendline connecting successive tops and the
> > intersection point is higher than the triangle's midpoint. Rising
> > wedges are traditionally interpreted as a "continuation pattern"
> > meaning that prices should continue higher at or just before the
> > trendlines meet.
> >
> > You can see this using the DJIA chart at
> > http://coolhistory.com/ChipsCharts/Markets - I've drawn the red
> > trendline connecting the tops and its easy to imagine the trendline
> > connecting the bottoms.
> >
> > FWIW, Triangles and wedges are the most common charting patterns and
>
> > are _very_ easy to get wrong. I _never_ trust them unless there is
> > confirming volume pattern (the volume within a triangle should be
> > falling as the triangle continues to form). Thus, unless they
> supply
> > actual volume numbers, I never apply triangle analysis to indices.
> On
> > other thing to keep in mind is that people often draw triangles with
>
> > 2-point trendlines instead of the much more reliable 3-point
> trendlines.
> >
> > Hope this helps,
> > Chip
> > http://coolhistory.com/ChipsCharts
> >
> >
> > ---Harley Meyer <meyer@xxxxxxxxxxx> wrote:
> > >
> > > In the spirit of learning can some one send a .gif to show me what
> a
> > > rising wedge is. Maybe a couple of .gifs to show a couple of
> > examples. I
> > > have heard this mentioned occasionally and still don't what what
> it
> > is.
> > > Same goes for some of the triangle analysis mentioned in the past.
>
> > > Harley
> > >
> > > Dr C. Roffey wrote:
> > >
> > > > Be Careful. The DJIA and the S&P are both at the top of rising
> wedge
> > > > patterns. If the S&P breaks below 950 ... watch out.
> > > > The UK FT 100 is in the process of forming a right shoulder for
> a
> > Head
> > > > &
> > > > Shoulders top. The Nikkei is nearly finished its technical
> rally. It
> > > > may
> > > > try to test 17500 but the next major move is downside.
> > > > I am not a happy chappy with these markets.
> > > > Regards
> > > > Dr Clive Roffey
> > >
> > >
> > >
> > >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > _________________________________________________________
> > DO YOU YAHOO!?
> > Get your free @yahoo.com address at http://mail.yahoo.com
> >
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