I am not sure why you calculate high to the trend line on that day to subtract the current close to get your target. What I see on your chart, resistance @ 27.27 and the trend line made it look like ascending triangle is a bullish pattern. To calculate the target price of the ascending triangle, 27.27 (resistance value) – 25.34 (Begin of the trend line low of the day value)= 1.93. If it break the resistance then 27.27 + 1.93=29.4 is the target for ascending triangle. For fail ascending triangle is when it break the support trend line and to find the target for fail ascending triangle is “the value of the trend line subtract 1.93= the target. The rule of thumb is when the price get closer to the apex the weaker the breakout going to be another word is more likely not going to reach the target price.
thx cyber – was reading a new book and testing it’s theories – never got triggered obviously. It’s just been sitting in that channel for over a month now and every time it hits Resistance it drops back down to support
I just started reading it – It shows you haw to score different chart patterns but being a novice I got too involve in trying to figure out the book I lost focus on what was right in front of me. I am only paper trading with this book to test it. It is Trading Classic Chart Patterns – a chart pattern scoring system by Thomas N. Bulkowski
ok. I read the all the sample pages from amazon.com. It seem to be a good book for many new users to learn patterns and basic trend lines. I would not worry much about statistics score system. Statistics is always changing and it may not be true today. I like statistics theory, but there is a flaw in the Statistics itself. I can’t tell you about the flaw because I’ll end up making a book out of it. You should read about ”Evidence Based Technical Analysis”. This book will not tell you how to trade. It more about back-testing theory and why trading system work and fail.
I am not sure why you calculate high to the trend line on that day to subtract the current close to get your target. What I see on your chart, resistance @ 27.27 and the trend line made it look like ascending triangle is a bullish pattern. To calculate the target price of the ascending triangle, 27.27 (resistance value) – 25.34 (Begin of the trend line low of the day value)= 1.93. If it break the resistance then 27.27 + 1.93=29.4 is the target for ascending triangle. For fail ascending triangle is when it break the support trend line and to find the target for fail ascending triangle is “the value of the trend line subtract 1.93= the target. The rule of thumb is when the price get closer to the apex the weaker the breakout going to be another word is more likely not going to reach the target price.
thx cyber – was reading a new book and testing it’s theories – never got triggered obviously. It’s just been sitting in that channel for over a month now and every time it hits Resistance it drops back down to support
today it would have triggered but only had it as a day order. Now I will watch an see if it goes back own to support
What book is this Brian? Just curious…
come on spill the beans what Ray is asking. I am wondering about that view as well.
I just started reading it – It shows you haw to score different chart patterns but being a novice I got too involve in trying to figure out the book I lost focus on what was right in front of me. I am only paper trading with this book to test it. It is Trading Classic Chart Patterns – a chart pattern scoring system by Thomas N. Bulkowski
ok. I read the all the sample pages from amazon.com. It seem to be a good book for many new users to learn patterns and basic trend lines. I would not worry much about statistics score system. Statistics is always changing and it may not be true today. I like statistics theory, but there is a flaw in the Statistics itself. I can’t tell you about the flaw because I’ll end up making a book out of it. You should read about ”Evidence Based Technical Analysis”. This book will not tell you how to trade. It more about back-testing theory and why trading system work and fail.