Thought's on this pattern set up ?

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stickman

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Wednesday, January 18, 2006 - 12:31 pm:

Hi All

is this a broadening formation {bottom}?

any reading material on such set ups and how to trade them ?

cheers

Trade to Learn, Not to Earn

palmtrees

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Wednesday, January 18, 2006 - 12:56 pm:

Hi StickMan, was wondering the same with CBH. I don't think broadening wedges are common but I do recall Colin describing the behaviour of the XAO, just after the october correction, as exhibiting the above and I think it was a continuation pattern? cbh

All the best , Mark

stickman

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Wednesday, January 18, 2006 - 01:09 pm:

Hi mark
found this

cheers

Megaphone Bottom Classic Pattern

Implication
A Megaphone Bottom also known as a Broadening Bottom is considered a bullish signal, indicating that the current downtrend may reverse to form a new uptrend.

Description
This rare formation can be recognized by the successively higher highs and lower lows, which form after a downward move. Usually, two higher highs between three lower lows form the pattern, which is completed when prices break above the second higher high and do not fall below it.
The pattern is completed when, usually on the third upswing within the pattern, prices break above the prior high but fail to fall below this level again.

cheers

Trade to Learn, Not to Earn

elisabeth

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Wednesday, January 18, 2006 - 04:48 pm:

Hi Stickman,

This is an article by Bulkowski on one aspect of broadening tops and bottoms. Hope it helps.

Elisabeth

http://www.traderslog.com/trading-partial-declines-rises.htm

stickman

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Wednesday, January 18, 2006 - 05:21 pm:

Thanks Elisabeth

looks like it might be a- Broadening Wedges, Descending ?

i wonder how you can measure the break out target , from the widest part ?

cheers

Trade to Learn, Not to Earn

palmtrees

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Wednesday, January 18, 2006 - 06:04 pm:

Thanks Elizabeth. As I understand it , If SM's AZZ chart now reverses, that would represent a "partial decline" with a 76% chance of an upward breakout.He mentions a "performance" after breakout of 32%- 34%. What does that mean? Is that 32% of the last retrace added to the point of breakout at the upper trend line? But, I wonder if our time frames are relevant here as both our charts display a more protracted period.Bulkowsi's examples seem to operate over shorter periods.
All the best, Mark

stickman

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Wednesday, January 18, 2006 - 06:33 pm:

Hi
here is a weekly line chart the pattern is two years old does that matter ?

have a look at the tmf hasn't been below 0 for a while ?

only one way to find out is to put some money on the line ?

on a side note they have 40 mil in the kitty and a lot of drilling coming up this year in the usa ?

cheers

Trade to Learn, Not to Earn

chriso

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Wednesday, January 18, 2006 - 08:58 pm:

This one looks like you might have to wait for a bounce off a trend or support line.
The low in oct 02 could be the key to this one, it's close to a tripple bottom supported by the trend line from June 00.
The trend line from June 00 does'nt look strong enough on it's own it needs to be backed up buy some other support.
Theres no need to put money on it without confirmation because if it fails it looks to be going to the bottom of the broadening wedge.
If that happens i suppose you could trade the range of the wedge which looks like about a 6 to 8 month trade. It's hard to tell the more it broadens the longer the time frame and bigger the profit.

Chris

007

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Wednesday, January 18, 2006 - 11:11 pm:

Stickman,

Yep, it's a broadening descending wedge. There's one on the shorter time frame chart as well. So you've got mamma BDW and baby BDW with a clear falling volume trend.

Will be interesting to see how this one turns out.

Mamma BDW

Baby BDW

Ultrasound

azz

007

(Message edited by 007 on January 19, 2006)

stickman

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Wednesday, January 18, 2006 - 11:27 pm:

HI All

first this one trendline break

and this one check the white space between the low at .41 and the lower trend line?

i might buy a few {a sample} tomorrow with a stop under the recent low ?

cheers

Trade to Learn, Not to Earn

stickman

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Wednesday, January 18, 2006 - 11:30 pm:

thanks for the charts 007

and your thought's Chris

cheers

Trade to Learn, Not to Earn

stickman

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Sunday, January 22, 2006 - 11:21 am:

found another will watch these over coming months ?

cheers

Trade to Learn, Not to Earn

stickman

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Monday, April 10, 2006 - 12:14 pm:

Hi All

well this one is going to plan

first target the top trendline ?

hit .50 today
cheers

Trade to Learn, Not to Earn.

when you lose,don't lose the lesson.

sentinel

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Tuesday, April 11, 2006 - 08:52 am:

Classic broadening wedge pattern. Will it complete another leg or has it gone into failure?

STO Broadening wedge