Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: R Stevens who wrote (4428)	7/5/1998 11:27:00 AM
From: wizzards wine	Read Replies (2) \| Respond to of 34810

Morning R Stevens, I believe that the chart that you have illistrated is not a triple top buy but rather three successive double top buy signals and then a nice pull back for an entry. The stock has just broken the BRL thus turning the trend to positive. My only question would be the box size, a little smaller than the norm??? Later Preston

To: R Stevens who wrote (4428)	7/5/1998 12:30:00 PM
From: Bwe	Respond to of 34810

R....The chart you displayed shows a "Ascending Triple Top" pattern. It's a variation on the "Bullish Signal" pattern which has the characteristics of rising bottoms and rising tops. The bullish signal shows that demand is getting stronger while supply is weakening. The bullish signal formation is a more complex version of a simple double top buy signal. The Ascending Triple Top formation is the big brother of the triple top buy formation. Think of the Ascending Triple Top as two Bullish Signals in one pattern. Take care, Bruce

To: R Stevens who wrote (4428)	7/5/1998 12:56:00 PM
From: Bwe	Read Replies (1) \| Respond to of 34810

I neglected to answer your question with regard to the bull trap formation. The key feature of the bull trap formation is when a buy signal is given after a stock penetrates a triple top formation, that is where the two previous tops occurred at the same, or almost the same, price level. The immediate pullback occurs after having people's stop-buy orders executed for those investor's covering short sales at the triple top buy point. Also, the subsequent pullback fools those that bought the triple top buy signal. Since the bull trap can't be detected before it actually occurs, a trader with a short term time frame for the particular trade could put it a stop loss order at the reversal point in order to prevent further losses. Hope this helps. If you would like me to explain the bear trap, the good twin to the bull trap, in a bit more detail, I'd be more than happy to. Bruce