Sv: [RT] Diamonds Were Forever

["Stig O" <olausson@xxxxxxxxxx>]

Bill,

Your trading range looks too sloppy for me. Personally I would not call that a trading range. But I agree, if it were, your point would be valid.

So how about this one?

Triangles are usually continuation patterns, as oposed to diamonds. 
In this chart we have a triangle (red lines), broken upside with downward test at apex. BUT we never pass the top at B. 
Thus the pattern is a failure, and failures are most often followed by violent moves in the other direction - in this case DOWN.

OR

If you find the triangle too sloppy, which one could argue - use the upper blue line insted.
We have an upside break of the blue line, with a test of the line and a subsequent upmove - that triangle is now a rare reversal pattern.
BUT the reversal fails at top B as well - so the direction "MUST" be down and violent as usually is the case when it comes to failures.
-----Oprindelig meddelelse-----
Fra: t-bondtrader <t-bondtrader@xxxxxxxxxxxx>
Til: realtraders@xxxxxxxxxxx <realtraders@xxxxxxxxxxx>
Dato: 14. oktober 2000 22:59
Emne: Re: [RT] Diamonds Were Forever


>Stig, here is another view - and one which makes me want to lean towards the
>break to the south, but it could then turn round and end the year on the top
>line - again!  The last reversal from the top did that in quick order, so it
>may do it again.   For me, it really does have to break the line and close
>on the lows...
>It will be interesting to see how it pans out.
>
>
>Bill Eykyn
>t-bondtrader@xxxxxxxxxxxx
>www.t-bondtrader.com
>"Learn to read the tape"
>
>
>----- Original Message -----
>From: "Stig O" <olausson@xxxxxxxxxx>
>To: <realtraders@xxxxxxxxxxx>
>Sent: Saturday, October 14, 2000 8:51 PM
>Subject: [RT] Diamonds Were Forever
>
>
>>
>> Isn't this a beautiful diamond?
>> A weekly chart of the Dow.
>> Please note the parallell lines.
>> This is what I call a Break Out!
>> Or "Down" if you like......
>> A retracement rally (steep and scary) and down we go!
>> Or?
>> Other suggestions?
>>
>>
>> stig
>>
>>
>> To unsubscribe from this group, send an email to:
>> realtraders-unsubscribe@xxxxxxxxxxx
>>
>>
>>
>
>
>



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