"well I just read this, maybe because it's a(n) ascending triangle instead? <g>"
Boplicity,
I always appreciate being corrected when I am in error; I find that a useful learning apparatus. In investigating your
supposition, I feel I am correct in terming the pattern I am focusing on as a rising wedge.
To point out the parameters of the object of my focus, I am looking at the $compx daily chart, drawing a line for my upper boundary connecting the points of 4/20, 5/4. The lower boundary of my observation can be observed connecting the points of 4/25, 5/4.
Now, please check the following:
chartpatterns.com
chartpatterns.com
The slope of the upper boundary is not horizontal, it has a rising slope.
More importantly, I am concerned with the implication of the
pattern I am focusing on. An ascending triangle is common in uptrends and often results in a continued up-move.
A rising wedge implies a break downwards from the pattern.
Depending on how I squint (ggg), it appears a downward break is in progress. Stochastics (falling), ADX (turned negative),
and 5e8s MA Crossover (an indicator which serves me well)
all support that the index is weakening and likely to continue down over the days to come. Should the expected down-move in fact come to fruition (which would cause me to target fib retrace points from the 4/4 low to the 5/2 high), then the outcome would also support my terming what I'm seeing as a wedge over your terming the pattern an ascending triangle.
I am offering this explanation to you not to begin an argument, but to clarify in my mind the pattern I have been "seeing" and the desire to not erroneously term my past, present, and future recognition of this pattern.
Regards,
Eichler |
