nice looking ascending triangle on the stock indices - best shown by the Dow Industrials daily chart.
if you wanna live, don't play that LOL. symmetrical triangles very treacherous. i think it'll fake at least 2 times before going for the real move. if u wanna play it, wait for definitive breakout, then play the first pullback.
Every trader and their mother knows about symmetric triangles, yet so many lose money playing that strategy. Watch out for the fake out move. You may get a breakout and then feel safe enough to join the crowd; and then ... wallup ... here come all the orders in the opposite direction and you get stopped out for a loss.
try flat top for beak up and flat bottom for break down, scroll up for result http://www.talkstox.com/forum/showthread.php?postid=17389#post17389
From a technical purist point of view (which I'm not), the ascending triangle most likely will produce an upside breakout. However, there are a lot of traders who just luuuuuuv to wait for sheep to jump in a trade based upon common technical knowledge, and fade it. They make their money when the sheep run for the exits and pocket the cash when the panic is over.
look at S&P weekly, price right at weekly trend down and try to play with fib. numbers from December high to March lows,( retracement to 0.786) same number I think we are due for a pull back but are we going to hold support levels? time will tell if bear is over. disclaimer: I am still loosing money in trading so do not use this information to trade, this is for entertainment purposes only.
The Dow will do its third head and shoulders formation in the last 13 months. From here, watch for a peak around 9000, a fall back to another immediate shoulder then a trend down out of the large weekly symmetrical triangle...this will be the stocks bear blow out before long term investors really get back for the long fight back....wait till 2005 for the next major recovery.... Its all on the chart symmetry....