Jeffry White: The only thing that really matters, in my mind, is that it's done consistently, thereby producing something objective.
Well I have to agree with most of that statement. However, consistently is not the only thing that matters, but it a good first start.
but I also agree with the concern over moving into the apex of the triangle on those charts, as AA notes.
Here are a few lines from one of "augieboo’s" post on the IHub MDA Thread with regards to the XAU and HUI discussion.
...As to the distance to the apex issue. The
only "authority" I know of who has ever actually quantified
his findings is Bulkowski, Encyclopedia of Chart Patterns.
Bulkowski studied 162 triangles which followed an up-
trend and broke upward. Of those 162, 20% broke out between
the 75 and 80% marks, another 20% between the 80 and 85%
marks, 14% between the 85 and 90% marks, and 10% broke out
past the 90% marks. Thus, 64% of them broke out at least 75%
of the way from the beginning of the formation to the
apex. Overall, the average formation broke out 78% of the
distance to the apex...
Since I have not read the book I cannot personally comment on the book.
Regards,
LG |
