Ascending Triangles - Gotta love 'em!

[Deadb440]

RDCM - Setting up to make a move.........  I've been noticing that on AT's that I choose to ignore the Long Shadows (or Spikes) from the main body of the candles because sometimes these can represent miniscule volume at the extreme prices yet most here include them...
Does anybody else not include them or is there a general rule I'm missing?

[thai626]

There is no genera rule deadb.  It's all subjective........I like to connect the line that basically has the most touches for the breakout line.  I like this setup...............my target is at about 6.27.  APPLAUSE guys for the good finds.

[wrangler]

I like to have true breakout confirmed before buying into any of the triangle plays. I've seen many times a stock will play till it's caught at end of triangle and shoot down. I call it a true breakout when price finally shoots above the top triangle line with a higher price of previous day's high and follow stock when this happens and if it continues to make new High's with each tick and huge volume coming in then that's it. And it has got to have good and lot's of volume the more the better, that shows true investor interest in the stock. Sometimes the breakout can happen before important news is about to be released and also after an important news release.
Goodluck trading to all

[ScottishTrader]

Alrighty, another ascending triangle on the heads-up for next week - TIVO looks set to break key resistance at 6.08, which is also the exact low of the June 05 gap up.  Have been hearing more positive things about TIVO lately (unfortunately I can't remember exactly where from)  that competiton from generic PVRs  is easing as TIVO carves out its position as best of breed in its market.

Chart looks nice and set to go ADX is ticking up with red line (-DMI) heading south - volume has been picking up this last week too.  Any thoughts???

[Melf Elf]

deadb, thai, and wrangler,

Good discussion on A.T triangles, the trendlines, and where they breakout.  Applauded you all.

I'll use MCU since we've discussed it here, and we had different ways of drawing the top trendline.

I like to have true breakout confirmed before buying into any of the triangle plays.

There's the rub.  What constitutes a "true" breakout?.

I call it a true breakout when price finally shoots above the top triangle line with a higher price of previous day's high and follow stock when this happens and if it continues to make new High's with each tick and huge volume coming in then that's it. And it has got to have good and lot's of volume the more the better, that shows true investor interest in the stock.

That's a very good description, wrangler. 

Regardless of how we drew the top trendline on MCU, the highs were 1.70 and 1.72, so I'm not going to feel that I got a "true" breakout until I see a new high at 7.13 get printed and some volume coming in, like wrangler described, to tell me that the overhead supply from that 3 million share day on December 5 has been absorbed, and that the stock is ready to go higher. 

MCU printed the 1.73 early Friday morning, and in the first hour and half, volume already was 2 times its daily average (100 day).  That's nice.  You want to see that volume come in, like wrangler said.

No guarantees, and yes, it always can reverse, but that's about as good as it gets for confirmation of a "true" breakout, when it prints a new high, volume comes in, and the stock holds most of it's gains on the day.

[Melf Elf]

Sorry, I don't think the MCU chart printed.  Here it is.

[Deadb440]

I find it very interesting how different programs reflect subtle differences in the way a chart is viewed.  Using Stockcharts.com you can see very clearly on my MCU chart that a SYMETRICAL Triangle formed and not an Ascending Triangle, however on the MPH chart for the same stock (but on the Canadian Side) it was an Ascending Triangle.  Either way it's all VG... Dead

[wrangler]

XRX : Consumer Goods
Industry: Business Equipment

Here's one for us ascending triangle lover's. May be ready to move out of triangle but confirm breakout before you buy but either way this is about to move in either direction. Do you're TA before buying and look for the rewards.
Goodluck trading

[wrangler]

XRX : so far with today's trading, if it stay's the same it looks like, tomorrow might be the day that this stocks price will show which way it will go.
Goodluck trading to all

[Deadb440]

Tough call on XRX.  It's definitely got the pattern but appears to be topping out on many indicators though possible room for a move to $16.00....  Good luck.

Again I'm curious on another note with everyone here.....  Who  is using software to pick their patterns and who is using good ole visual T/A?

Mine is strictly visual.......  Dead

[statement00]

Deadbag- Nice charts, I must say. Also I'm like you, I'm visual.

Anyways, I wanted to update one pick and post some info about targets for other stocks I mentioned.

1) EXFO- This is my contest pick and an ascending triangle that brokeout last week. As you can see on the chart, it has come within .06 of its target

2) MAG- I posted this a day or 2 ago, just wanted to post a target of 5.15 since the low is 3.05, top is 4.10, add the difference of 1.05+4.10=5.15

3) SDRG- another one I posted a day or 2 ago, Target-1.7, low-.30, top-1.00, difference-.70

Of course these targets are for a perfect scenario, and I also want to add that I agree with wrangler. I buy on the confirmation of the breakout with volume. Like he said, many ascending triangles will fail at the end of the triangle and shoot down.

[wrangler]

I'm visual also and edit it also myself thru paint from my pictures folder. I feel software is a waste of money. There's a lot of good way's to go about looking for good stock pick's without having to buy software to do it for you.
Goodluck trading to all

[wrangler]

XRX : is still within it's ascending triangle, wonder which way it will go, should be soon and we will know

[ScottishTrader]

Just wanted to post an update on TIVO, which I put on this thread a couple days ago - It broke upside resistance at 6.08 on Friday, but on alomost no volume and continued to languish today (though Vol was up slightly).  I have read a few other sites that have been bullish on this breakout for TIVO, but am surprised to see so little action.

I was considering buying on Fri, but the volume and momentume just weren't there.  Now not sure if this will fuel a slid break ointo the 6+ territory.

Chart looks nice but any thoughts

[wrangler]

Hi ScottishTrader
The only thing that I can maybe help you out with on TIVO is look at the six month chart I posted and you will notice it has had a cycle of up's and downs' and according to the way it's been going it is time to go back into it's down turn.
I might be wrong but stocks have a way of repeating itself. Whatever you decide to do, do it because you feel safe about you're decision if their is any doubt about it then maybe it's not what you're looking for.
I've got a saying I go by,,If anything I'm about to do makes me stay awake at night and makes me think about it then I don't want to do it , I like to use that when I stock trade if for some reason I don't feel like a stock questions me about if I should buy it or not then I move on. There's to many stocks out there waiting to make a breakout.
Patience is a virtue
Goodluck with you're decision