Novice Traders' Notebook | DEC 1996
The Expanding Triangle by Kit Webster
The Expanding Triangle by Kit Webster Classic chart analysis and Elliott wave theory both consider the expanding or broadening triangle chart pattern to be a reversal of a long-term trend, and further, that such an event may be occurring in the Dow Jones Industrial Average. Here are the details. As technicians ply their trade, they look at myriad manifestations of price and volume such as stochastics, head and shoulder patterns, and advance-decline lines to attempt to divine the market's direction. Most often the scene we see is a variation on an old theme, played out in new ways. Every now and then, however, something unusual occurs, and this is such a time for the stock market. The Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 and the New York Stock Exchange index appear to be tracing a rare but powerful formation that will influence the ongoing discussion of bull versus bear markets -and, in my opinion, the formation is decidedly bearish. This rare pattern is the expanding triangle or broadening top.
by Kit Webster
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.