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To: HairBall who wrote (49965)	8/16/1998 7:38:00 AM
From: donald sew	Read Replies (2) \| Respond to of 58727

LG, The common rule is that symmetrical and descending triangles are bearish signals in a downtrend. The real question is whether DELL is now in a dowtrend. At this point, technically it cannot be strongly argued that it is in a downtrend since it has not yet produced lower lows. If we accept the possible descending triangle then it is likely that we are at the beginning of the downtrend, but if it is really a symmetrical triangle it is still uncertain. I do see the the flag. My question is that this flag is within the parameters of the larger symetrical triangle with the lower vector starting on 7/7; which takes the lead. I went and checked with one of my reference source, and it implies that pennants and flags take the direction of the trend. I always believed that pennants and flags were normally points for continuation of the trend, not pivotal points for dirction change. If I am correct with these basis rules outlined in the attached URL, then you are assuming that the trend is up, which I will not argue since DELL has not set lower lows yet. If you have a different set of rules please forward the URL - I always want to learn more and hear alternative methods. Frankly, I am actually leaning towards the descending triangle formation, but still need confirmation. Seeya chartpatterns.com