Replies to post #437208 on Zeev's Turnips Patch-No Politics (ZEEV)

[Bullwinkle]

Now that's profound >8^) Being as many are aware of this pattern, it may not materialize. Also one must take into account that it is an index and a long term pattern that has spanned 2+ years, but the divergences are hard to ignore...



The rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.

http://stockcharts.com/education/ChartAnalysis/risingWedge.html

[BuzzOnDaBeach]

There are two problems with your ascending triangle theory on the NDX. First, it's technically not an ascending triangle unless you count the top from two weeks ago as one of the points in the horizontal line. The other price points from the last 18 months are descending. Second, a true break out and up from an ascending triangle should be on rising volume, not falling volume. Oh, and the same rising wedge evident in the compq is shown in red for the ndx:



Buzz

[BuzzOnDaBeach]

The Dow makes a better case for a short term ascending triangle, although still within the bearish rising wedge. However, the Dow doesn't show the negative divergences still intact that the compq does. That may be attributed, however, to strength in energies which have lead the last few months.



Buzz