Thanks for the diamond.pdf Hooya - interesting. Looking through all the standard texts - Murphy, Edwards & Magee and Jiler - none of them require the diamond to show any symmetry. but the right hand side, which is a triangle, should show approximate symmetry - i.e. not a rising or descending triangle. Also they tend to be large formations rather than short term.
Good Morning All
I have been watching the market this morning since it opened, yes I really got out of bed that early !
I make the following observation
Last night after the close IBM posted good figures. This morning ftse falls and continues to do so for about 45 mins then it reverses with a vengance supposedly because of the IBM news ftse then it turns back down again.
My question. The IBM info was known when ftse opened so why did it not rise immediately rather than going down first ?
Might this be a case of manipulation. Send ftse down first to induce selling, then buy at lower levels to drive up the price and finally when as many as possible have been sucked in, sell, take the profit and have a nice weekend. Have I been watching too many conspiracy progammes on the television.
Regards
bracke
I have been watching the market this morning since it opened, yes I really got out of bed that early !
I make the following observation
Last night after the close IBM posted good figures. This morning ftse falls and continues to do so for about 45 mins then it reverses with a vengance supposedly because of the IBM news ftse then it turns back down again.
My question. The IBM info was known when ftse opened so why did it not rise immediately rather than going down first ?
Might this be a case of manipulation. Send ftse down first to induce selling, then buy at lower levels to drive up the price and finally when as many as possible have been sucked in, sell, take the profit and have a nice weekend. Have I been watching too many conspiracy progammes on the television.
Regards
bracke
Hooya said:
So an actual rise of 7 plus a notional rise of 10 gives a theoretical rise of 17 in response to the IBM news. So far so good. Then a fall, yes ok but then a biggish rise - why? Followed by a fall, which I take to be profit taking.
Regards
bracke
by then the news doesnt matter. Shouldnt read into the IBM thing too much. It could be open bounce profit taking, followed by support as per newsletter at 38.. bounce. profit taking at 2 day ma. Simple. I think you are trying to read to mcuh into why something is happening rather than what is happening. just my opinion
Hooya said:which pageits a big book
In my edition (1986) it's 153 - 155
The section describes a diamond as a combination of an expanding and a symmetrical triangle. Volume should also expand during the expanding triangle phase, and contract during the symmetrical triangle phase.
Neither of the example charts show the diamond as symmetrical, although the Soybean meal chart shows the symmetrical triangle side (only) with some horizontal symmetry. It would appear that the use of the term "symmetrical Triangle" is to differentiate it from either a rising or descending triangle. A falling line of resistance and a rising line of support would appear to be enough to classify it as a symmetrical triangle, within reason.
Lots more examples in Edwards and Magee, and a couple in Jiler.
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