Originally Posted by
Dr. Dave
Here's an extra bit of TA - when you see a big ass triangle like this, and you are looking for it to break up or down, sometimes the price will turn around near the middle of the price range and head to the end its going to break on... ascending triangles are bullish usually, and here the price has paused in the middle, possibly heading up... now the extra bit - draw a fib retracement from the last low that hit the triangle, and the last high - in this case, its the upper trendline - you want to see the reversal preferably at the 61.8% level. That's where this weeks candle opened. So, early in traders TA traders like lansing would actually go in now, looking for the upside breakout. Now to the elliots and retracements... some traders will wait for a close after the price makes a breakout, ie. buy as its passing the line - TA traders like bulkowski... then after it breaks, often there is a retest (but if there isn't you've missed the boat)... the retest is usually the line, in some cases, wehre there wasn't an internal pullback to that 61.8%, you'll get the retest in the pattern, usually about that level. The retest is usually a point in the elliot wave or a corrective wave on the upswing, the more cautious TA players, like raschke play this one... anyway, i noticed that lansing is looser with stops, as he gets in earlier, while the latter two seem to be tight with them. TA for the day... LOL
