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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Compadre who wrote (1050)	12/9/1998 1:01:00 PM
From: Debra Orlow	Read Replies (1) \| Respond to of 99985

Jaime, I will quote from Edwards & Magee: "In many respects, in most in fact, they (right angle triangles) perform like their Symmetrical cousins, but with this very gratifying difference: they give advance notice of their intentions. Hence, their names, for the supposition always is that prices will ascend out of the Ascending form and descend from the Descending form."

To: Compadre who wrote (1050)	12/9/1998 1:04:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

Jaime: Given that Ascending triangles are more reliable when developed from an up trend, then what makes them so special as compared to a symmetrical triangle? Both can be good indicators of trend continuations. The obvious difference is that the ascending triangle continues to challenge the “same” resistance point coupled with diminishing momentum to the down side. Hey Jaime, I am no expert...I just call them as I see them. I am not taking issue with your analysis, just stating mine...<g> BWDIK Regards, LG

To: Compadre who wrote (1050)	12/9/1998 1:16:00 PM
From: donald sew	Read Replies (2) \| Respond to of 99985

Jaime, >>>>> Given that Ascending triangles are more reliable when developed from an up trend, then what makes them so special as compared to a symmetrical triangle? <<<<<<<<< Thats a good question? I normally use that rule that all of formations (RECTANGLES, WEDGES, FLAGS, PENNANTS, TRIANGLES) normally take the direction of the immediate short/mid-term trend, with the exception that an asymetrical triangle can go either way. Im not sure if that is text book definition, but thats what I normally go by. seeya

To: Compadre who wrote (1050)	12/13/1998 9:43:00 PM
From: TA Trader	Read Replies (1) \| Respond to of 99985

Jaime, maybe I can help you out a little. By definition, Ascending triangles are formed by correspondingly higher lows, meaning that buyers are coming in sooner on each pullback from an overhead supply area. Selling usually continues at or about that overhead supply area thus forming a rather flat lateral top. The key is that buying comes in sooner on each pullback and the selling comes in at the same level and NOT on declining highs as in a Symmetrical triangle. One can view an Ascending or right triangle as smart money accumulatng stock and eventually buying up all the overhead supply. An ideal ascending triangle breaks up through the supply line about 2/3 's through the formation on signifcantly increased volume. A point worth mentioning is that in most instances, after a quick move up, there is one final pullback and test of the breakout area in a relatively short period of time before moving substantially higher. Don't always bet on this, but if you miss the breakout and quick advance, don't chase as there will be some pullback after the sharp advance. Symmetrical triangles by definition can break either way as the formation is being completed. Keep in mind that in a symetrical formation, you have both higher lows AND lower highs( sellers coming in earlier each time) Hope this helps.l