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A. A strong rally, climaxing a more or less extensive advance, on which trading volume becomes very heavy, followed by a minor recession on which volume runs considerable less than it did during the days of rise and at the Top. This is the 'left shoulder.'
B. Another high=volume advance which reaches a higher level than the top of the left shoulder, and then...
Interesting mining stock.
How long will the commodity boom last?
Technically speaking, this is a textbook example of a rounding bottom.
The primary issue I have with this idea is the relatively short amount of time that the pattern has taken to carry out, although this may just be a product of a late-stage bull market and massive liquidity injection.
The following breakout alert is from my Premium Stock Alerts Service with Macro-Ops.com.
Here's the trade:
3% Breakout: $5.26
1.50% Breakout: $5.20
Price Target: $6.32
Stop-Loss at Minor Low: $4.66
Reward/Risk: 2.07
Thanks,
Brandon
Many well-respected traders, a number of whom I have studied under myself, vehemently oppose trading symmetrical triangles. I'm not here to say they're wrong or that I'm right, but I would like to shed some light on these misunderstood chart patterns using classical charting principles from Edwards and Magee. Much of the information I see shared online regarding...
