MDA - Market Direction Analysis

[LG]

Augieboo: I would draw the top line of the falling wedge from the pivot high on 12/2/02 connected to the high on 1/13/03 and extend right. However in this case, the falling resistance line you have starting from the high on 1/13/03 connected to the high on 3/3/03 is a legitimate resistance line. However, I would use the first line to illustrate the wedge.

Not all trend lines (support and resistance) have to be part of a formation. Sometimes there is no valid formation. A mistake some make is trying to force price action into a pattern that does not exist. Then he or she will be looking for possibly the wrong expected outcome and at possibly the wrong inflection point.

Regards,
LG