HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Arthur Hill
After a two-year consolidation, the Thailand SET Index started the new year with a breakout to turn bullish.
Position: Buy
Arthur Hill
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
PRINT THIS ARTICLE
SYMMETRICAL TRIANGLE
Thai SET Finally Gets Direction
01/09/06 08:39:17 AMby Arthur Hill
After a two-year consolidation, the Thailand SET Index started the new year with a breakout to turn bullish.
Position: Buy
| On the weekly chart (Figure 1), the Thai SET Index ($SETI) formed a large symmetrical triangle that extends back to January 2004. The index surged in 2003 and consolidated the next two years. The trendlines slowly converged as the consolidation coil tightened and the index broke above the upper trendline with a strong move in early January. It was like a spring being wound up and suddenly released. This advance also exceeded the September high and an uptrend has been reestablished. |
|
| FIGURE 1: $SETI, WEEKLY. The Thai SET Index formed a symmetrical triangle that extended back to January 2004. |
| Graphic provided by: MetaStock. |
| Graphic provided by: MS QuoteCenter. |
| |
| In addition to the symmetrical triangle breakout on the price chart, two key directional indicators crossed paths. These indicators are part of the average directional movement index that was developed by J. Welles Wilder. They can be used on their own to establish a directional bias and the strength or weakness of that bias. On this example, plus directional movement (green, +DI) moved above minus directional movement (red, -DI) and broke out to its highest level since January 2004. This is the strongest advance in +DI in two years, further validating the breakout. |
| With a confirmed breakout present, it is time to establish an upside target and a downside reevaluation point or two. The width of the pattern can be added to the breakout for an initial upside target. In this case, the width is about 210 points and the upside target is to around 940. Broken resistance turns into support and I would set the first support level at 700. A move below this level would challenge the breakout and call for a reassessment. Key support is based on the December low and a move below 650 would be outright bearish. |
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
| Title: | Editor |
| Company: | TDTrader.com |
| Address: | Willem Geetsstraat 17 |
| Mechelen, B2800 | |
| Phone # for sales: | 3215345465 |
| Website: | www.tdtrader.com |
| E-mail address: | arthurh@tdtrader.com |
Traders' Resource Links | |
| TDTrader.com has not added any product or service information to TRADERS' RESOURCE. | |
Click here for more information about our publications!
Comments
Date: 01/09/06Rank: 4Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog