Good Example of a triangle?

[mauzj]

Hi,

I've been following the FTSE recently, and was wondering if what I've noticed is significant or not.

The attached chart is the FTSE 100 index, and according to my analysis it's just broken out of a triangle which consolidated a big drop. This is VERY bearish and the FTSE should plummet in the next week(s).

Would this be considered a good interpretation of the chart?

Thanks,


Jon.

 

[richtrader]

not sure if it's just me, but your chart looks all garbled.

 

[mauzj]

Sorry, I forgot that I can't upload images via http properly due to my firewall.

Please excuse the URL and use this link instead

<a href=http://www.jonswhorehouse.com/cht.gif>http://www.jonswhorehouse.com/cht.gif</a>

Thanks.

 

[richtrader]

nice domain name. lol

 

[opm8]

If I were interpreting your chart I'd say that the little triangle breakout is meaningless. Wait until the price comes down to your lower trendline and try to catch the bounce for a tiny scalp (this is a dangerous trade, btw).

My style of trading would have been to short the bounce off the top green trendline with the bottom one as the target. Of course there's hundreds of ways of interpreting what's happening here.

--opm8

 

[mauzj]

opm8,

Thanks for the opinion. I hadn't looked at the chart in that way before!

Mauzj

 

[reflexivetrader]

imo,its looks like the triangle formed in the lasts several weeks looks very similar to the triangle form from oct17 to nov28. However one cannot make assume a similar outcome!

wait for breakouts/breakdown to confirm current trend. with volatility and volume very low and geo-political events on the near horizon, wait for a catalyst to confirm direction.

good luck