Ascending Triangles - Gotta love 'em!

[pompano]

Heres one that I have been watching everday, waiting for a break.  The potential here looks really good with volume looking real good the past two sessions and MACD having a classic look to it.   

[pompano]

A question for the TA experts.  When is appropriate to use logrithmic scale and when is it not?  Would it have a major effect on your annotations.  TIA

[Ares]

Hi Pompano,

This is how I see SPBU.
It looks like it needs a lot of fuel (volume) to break the 1.07 resistance.
I may be reading the MACD incorrectly.
Would you please expand on the Classic MACD you are referring to?
On a positive note, SPBU has a higher high on my weekly chart (but still below the 8ma)
Weekly volume went down while weekly price was going down.
Current weekly volume is up as price went up.
I'm looking forward to learning more.

Ares

[BigSully1]

Would BOT qualify for an ascending triangle formation?

http://stockcharts.com/h-sc/ui?s=BOT&p=D&b=3&g=0&id=p76786531246

[Ares]

Hi BigSully1,

I can't seem to see the Ascending triangle ( I'm looking for a flat top with at least 3 tags of an uptrending line).
What I see instead is a bearish wolfewave pattern (those who are more familiar with this pattern please correct me if I did not understand it correctly).
If you're in, I hope I'm wrong.

The recent MACD seems to look nice but both the RSI(2) and stochastics are on overbought territory.

The best buy areas seemed to be when the stochastics and RSI(2) were both low.

It also looks like this stock needs to have a very good catalyst to have fuel to push past 199.70.

Ares

[BigSully1]

Hi BigSully1,

I can't seem to see the Ascending triangle.
What I see instead is a bearish wolfewave pattern (those who are more familiar with this pattern please correct me if I did not understand it correctly).
If you're in, I hope I'm wrong.

The recent MACD seems to look nice but both the RSI(2) and stochastics are on overbought territory.

The best buy areas seemed to be when the stochastics and RSI(2) were both low.

It also looks like this stock needs to have a very good catalyst to have fuel to push past 199.70.

Ares

Thanks for the reply Ares. No I'm not in this one. I've just been trying understand chart patterns and other technicals. I'll probably be a hard learner at this, but I'm trying. Back to the books.

[Ares]

Your welcome BigSully1,

I as well am still learning.
The problem I find with technical analysis so far is the different interpretation of the indicators and chart formations.

When the chart corresponds with the fundamentals, the higher the success is.
That's where I find the premium servie making a lot of sense for a longer term hold.

Here's another way I look at BOT:

T1 would be the primary uptrend.
T2 would be the secondary uptrend.
T3 would be the 3rd uptrend.

The angle of attack from the primary to the third trendline becomes steeper.
The steeper the trendline becomes, the more expensive (in the case of an uptrend line) the stock becomes - the less buyers are willing to pay.

When the stock becomes too expensive, it either goes down fast or go through a sideway correction.

During a sideway correction, Investors would normally assess the situation whether they are willing to pay a higher or a lower price for the stock.

When there's a change coming (mostly fundamental change), we would normally see either a descending triangle (more sellers are willing to offer a lower price) or an ascending triangle (more buyers are willing to pay a higher price) forming.

That's where we closely watch volume for either a breakout(more demand than supply) or a breakdown (more supply than demand).

Price going above the ascending triangle with very low volume may be a bull trap and price going below a descending triangle with very low volume may be a bear trap.

Indicators are just indicators. Price is king and volume doesn't lie.

That is what I've learned so far.

Happy trading,

Ares

[Ares]

Your welcome BigSully1,

Just be careful you're not hitting the smite button instead of the applaud button because my rating just went down 2 points - unless someone here doesn't like what I'm posting and not letting me know why. 

Keep in touch

Ares

PS. If someone doesn't like what I'm posting, please let me know so I can stop it.

[BigSully1]

No Ares, I didn't smite or applaud you. I think I have only applauded people twice and never smited, It's just something I don't pay much attention to. But I will definitely applaud you now that you bring it up. I can't imagine why anyone would smite you.

[calven]

I think you guys are completely missing the pattern....none of your submissions seem to fit the pattern  I wasn't the mystery smiter - but i can see why you might have received a smite... (BOT and SPBU arent ASC TRI)

The pattern has a FLAT top (resistance) to be flat the highs must be basically matching...also it needs upsloping support...

Read this for help:  http://www.chartsetups.com/articles/4/1/Ascending-Triangles/Page1.html

[Ares]

I think you guys are completely missing the pattern....none of your submissions seem to fit the pattern  I wasn't the mystery smiter - but i can see why you might have received a smite... (BOT and SPBU arent ASC TRI)

The pattern has a FLAT top (resistance) to be flat the highs must be basically matching...also it needs upsloping support...

Read this for help:  http://www.chartsetups.com/articles/4/1/Ascending-Triangles/Page1.html

Hi Calven,

I agree with you.

I do not see an ascending triangle pattern in BOT and SPBU.
I was simply showing Pompano and BigSully1 how I look at those charts.

The way you described it is exactly what I look for an ascending triangle - a FLAT top (resistance) and an upsloping support.

As far as I understand, the psycology for this pattern is, it is showing buyers are more willing to pay a higher price than before and less sellers are not wanting to sell at a cheaper price anymore - but there are still sellers (at the FLAT top) resisting price from  moving up.

Thanks for letting me know that you are not the mystery smiter.

Looking forward for more comments (to be corrected and improve).

Ares

[calven]

Lets get this thread moving again!!!

Heres what I got for ya - KDKN.OB

Very speculative - chart to come once stockcharts.com gets back online

MY KDKN is ON FIRE! 

In from 2.17 and looks like an easy double from here!

49$ price target? What the...!?!??

http://biz.yahoo.com/bw/070425/20070425005313.html?.v=1

I'm selling half my shares at 4.00 and the rest ill hold for 49

[ScottishTrader]

all i can say is wow and congrats calven - gotta love em!!!!

Thanks for the heads up on this one, unfortunately I didn't trade it (have been a bit distracted lately) but that is just a fantastic breakout - looks set for the double!!!


Right, lets keep em coming, I'll be on the watch....

[ScottishTrader]

speaking of ascending triangles... this one is one of Fous' picks - BWLRF.

Made a nice breakout above key 1.80 resistance a couple weeks back and has since been consolidating below $2.  I think it looks like it is ready to get going on the upside once again here.

[calven]

speaking of ascending triangles... this one is one of Fous' picks - BWLRF.

Made a nice breakout above key 1.80 resistance a couple weeks back and has since been consolidating below $2.  I think it looks like it is ready to get going on the upside once again here.

Wow that does look nice S.T. - You think $1.80 for a decent entry? I like that pattern, a lot of support near current levels and a nice uptrend/story....