ottoms; Triangles,Symmetrical Tops
Despite this formation being only 3 days long, I applied the 5% failure rule to itsperformance. A 5% failure occurs when prices move less than 5% in the breakoutdirection before reversing and moving significantly in the new direction. Forsharks with upside breakouts, the failure rate is exceedingly high at 41 %. The failure rate is even worse for downside breakouts at 44%. I consider formations to bereliable if the failure rate is below 20%. The reason for the poor showing is, inpart, because of the compactness of the formation. Prices break out in one direction, reverse course, and shoot out the opposite side of the formation, scoring afailure. With larger chart patterns, the stock has more opportunity to resume theoriginal breakout direction before making it to the other side of die pattern.The average rise from upside breakouts is 32%, well below the 40%posted by well-performing formations. Downside breakouts perform in linewith their bearish cousins, scoring a 21% average decline.I used a frequency distribution to compute the most likely gain or loss.Both types of breakouts have likely gains or losses of about 10%. These resultsare typical for many formations and suggest that you have to be ready to pullthe trigger quickly if you want to keep any profit.
Focus on Failures
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allowed and the shortest day should have a nonzero price range (that is, thehigh and low cannot be the same price).Figure 37.1 illustrates what I am talking about. If you look closely, the topsslope downward and the bottoms slope upward, forming a 3-day symmetricaltriangle. Each succeeding high is below the prior day's high and each succeeding low is above the prior day's low. Together, they form a 3-day, triangularshaped shark fin, hence the name shark-32.The volume trend is nearly always downward. This is sometimes notclear, but I used linear regression to compute the slope of the line over the 3day formation. All three chart patterns shown in Figure 37.1, for example,have downward volume trends.At first you may be skeptical that the formation on the right has a downward volume trend. Think of it this way: If you substitute dots instead of volume bars in die figure then draw a line so that it is equidistant from the threedots, you will find that the slope of this line is downward (higher on the left).In essence, this is linear regression, a mathematical way of placing the lineevenly between the dots. The slope of the resulting line gives the volume trend.
Focus on FailuresThe shark-32 formation sports a very high failure rate, so finding failure examples is easy. Figure 37.2 shows a shark formation failure. Regardless of whatyou call this formation—a reversal or consolidation of the prevailing trend—
Shark-32 patterns with both breakout types show a receding volumetrend over the 3 days, just as any other symmetrical triangle (sharks are very
Alien Telecom, Inc. (Telecom. Equipment, NYSE, ALN)
short symmetrical triangles).Some analysts say that sharks appearing symmetrical about the horizontal axis perform better than those that are not symmetrical. I found this to betrue generally for both breakout directions. I explore this further in the Statistics section later in this chapter.
Tour and Identification GuidelinesThe narrowing highs and lows of a shark-3 2 pattern remind me of a springbeing wound tighter and tighter. Eventually the spring releases and pricesshoot out of the formation. That is the theory, anyway, but the reality shows
that prices quickly return, causing a failure. More about failures later.As far as formations go, this one is easy to identify and quite common. Ioffer no table of identification guidelines because it is so simple. Locate a 3-dayprice pattern that looks like a short symmetrical triangle, that is, a chart patternhaving lower highs and higher lows on each of 3 consecutive days. No ties
Sep93
Oct
Nov
Dec
Figure 37.1 Three shark-32 patterns. Each has lower highs and higher lows on 3consecutive days.
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v
Shark-32Alza (Drug, NYSE, AZA)
Statistics
505
continue heading down, but they stop and pull back to the triangle apex. Thedecline, as measured from the breakout day low to the ultimate low, isjust 0.6%.Since the breakout direction is unknown ahead of time, an investor mustwait for prices to close above or below the triangle before taking a position in
the stock. Thus, I use the breakout day high or low to determine the gain or lossbecause that is the first day in which an investor would likely take a position.You can see in Figure 37.2 that an investor selling short the day after thebreakout would have gotten creamed. Prices pull back to the triangle apex thenext day and 2 days later they move above the top of the triangle. When thathappens, the formation fails. Prices continue up until mid-January when they
reach a high over 55.There is a saying that large formations are stronger than smaller ones.This adage certainly appears to be the case with this formation. It is even more
|u!91
Aug
Sep
Oct
Figure 37.2 A shark-32 failure. Prices break out downward, pull back, and movesubstantially higher from this shark-32. The downward plunge takes prices lessthan 1 % lower, a so-called 5% failure.
once prices break out of the formation, they should continue moving in thesame direction without reversing substantially.First some definitions: A breakout is when prices close outside the formation. Since the first day has the widest price range, it is the benchmark togauge a breakout. A breakout occurs if prices close above the first day's high or
pronounced after factoring in the high failure rates. The larger symmetricaltriangles have failure rates that are about one-tenth the rate of sharks.
StatisticsTable 37.1 shows general statistics for the shark-32 pattern. Since chart patterns perform differently depending on their breakout direction, I separatedthe formation into two categories: upside and downside breakouts. These formations are plentiful enough that I only examined 100 stocks over 5 years tolog almost 300 patterns. You can see in the table that most act as consolidationsof the short-term price trend with downside breakouts having slightly morereversals.
below its low. Expect prices to continue moving in the breakout direction.However, throwbacks to the triangle apex from the top or pullbacks fromthe bottom are both permissible. Throwbacks or pullbacks occur over half thetime (sometimes both occur, but I only consider to be valid those in the break-
The failure rate for both breakout directions is just over 40%. This isdouble the 20% maximum I consider acceptable, suggesting that you should
out direction). Occasionally, prices throw back or pull back then keep moving.
Table 37.1General Statistics for Shark-32 Formations
If a throwback drops below the first day's low or a pullback rises above the firstday's high (and closes there), then the formation is a failure.Figure 37.2 shows a shark-32 pattern in a rising price trend. Since theshark pattern functions as a consolidation of the trend most of the time, we canexpect prices to continue rising after the pattern completes. It does not; prices
reverse and head down.The apex of the triangle, where two imaginary trendlines drawn along theboundaries of the formation meet on the right, is at a price of 32'/s. Two daysafter the formation completes, prices drop to a low of 305/s and close at the lowfor the day. The next day prices move even lower to 307/i6. The first day of theformation has a low of 313/4, so prices have clearly broken out downward (theclose of 305/8 is below the first day's low of 313/4). We can expect prices to
UpsideDescription
Breakout
DownsideBreakout
Number of formations in 100 stocks from1991 to 1996
160
139
Reversal or consolidation
1 1 1 consolidations,49 reversals
63 consolidations,76 reversals
Failure rate
66 or 41%
61 or 44%
Average rise/decline of successful formations
32%
21%
Most likely rise/decline
10% to 15%
Less than 1 0%
Number showing downward volume trend
1 46 or 91 %
119 or 86%
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Shark-32
StatisticsTable 37.2Breakout Statistics for Shark-32 Formations
stay away from this chart pattern. The average rise is 32 % for upside breakoutsand the decline for downside breakouts averages 21%. These statistics are both
worse (40% average gain) and better (20% average loss) for typical bullish andbearish formations. The frequency distribution in Figure 37.3 shows the mostlikely gain or loss for the shark-32 pattern. The tallest column is the one withthe highest frequency and the one I consider to be the most likely gain or loss.For upside breakouts, the most likely gain is about 10% to 15%, with a quarter of the formations having gains over 50%. Fifty percent is quite large and isresponsible for boosting the overall average up to 32%. I do not consider the
Description
Upside Breakouts
Downside Breakouts
Days to breakout
8 days
Throwback/pullback
102 or 64%
8 days80 or 58%
Average time to throwback/pullbackcompletion
8 days
8 days
6.5 months(192 days)
2 months(66 days)
Percentage of breakouts occurringnear 1 2-month low (L), center (C),or high (H)
L9%, C27%, H64%
L29%,
Percentage gain/loss for each12-month lookback period
L32%, C41%, H31%
L18%, C21%, H23%
For successful formations, days toultimate high/low
right column to be representative of what a typical investor can expect to
receive, so I disregard it.For downside breakouts, the most likely loss is 10%; that is the tallest column on the graph. A third of the formations have losses under 10%, so if youare considering shorting a shark-32 pattern with a downside breakout, you
might reconsider.
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C35%,
H35%
As mentioned earlier, I performed linear regression on the 3-day volume
series and discovered that the slope of the regression line is downward over thecourse of the formation.
Table 37.2 shows breakout-related statistics for the shark-32 pattern. Theshark-32 pattern differs from a symmetrical triangle in that the breakout for a
shark pattern, by definition, comes after the formation completes. For symmetrical triangles, the breakout usually occurs well before the triangle apex.For the shark pattern, 8 days typically lapse before prices close above the highest high or below the lowest low posted during the first day of the pattern (thewidest of the 3 days).
Throwbacks occur when prices return to the triangle apex after an upsidebreakout. Throwbacks happen 64% of the time and are too infrequent to basea trading plan on, but they do give an investor another opportunity to take a
position in the stock. Unfortunately, not all throwbacks (and pullbacks, too)rebound and continue moving up. Figure 37.2, for example, shows a pullbackthat, after returning to the shark pattern, fails to continue moving down again.Pullbacks occur after a downside breakout when prices return to the triangleapex, which happens 58% of die time.The average time for a throwback or pullback to return to the price level
of the triangle apex (the center of the shortest day in the shark-32 pattern) is 8days. This is a day or two earlier than most formations. If you miss the initialbreakout, you might have another chance to invest or add to your positionwithin the coming week.
I determine the ultimate high or low by a significant change in trend, usually 20%, but stop short if prices return to the shark-32 pattern and cross to the
Figure 37.3 Frequency distribution of the most likely gain or loss for shark-32chart patterns with upside and downside breakouts. The likely return is less than10% or 15%.
other side.The number of days to reach the ultimate high or low varies dependingon the breakout direction. For upside breakouts, prices reach the ultimate highover 6 months later. For downside breakouts, prices reach the ultimate low inabout 2 months. I measure both from the breakout point.Where in the yearly price range does this formation occur? Most of theshark-32 patterns (64%) with upside breakouts form within a third of the
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Shark-32
yearly high. For downside breakouts, the pattern distributes more evenly with35% appearing within a third of the yearly high or midrange. Mapping performance onto the yearly price range, the picture changes somewhat. The bestperforming patterns for upside breakouts are those that land in the center thirdof the price range. They score an average gain of 41%. For downside breakouts, the best performing formations begin tumbling within a third of theyearly high; they post losses averaging 23%.
The last statistic concerns symmetry. Shark-32 patterns that are symmetrical about the horizontal axis perform better than those that are not. The following formulas measure symmetry:
Trading Tactics
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Trading TacticsIf your worst enemy tells you this is the formation to trade, ignore him; he is
trying to lead you into bankruptcy. With a failure rate nearly the same as a faircoin toss, why risk a trade? Since you might ignore my advice and trade this
one anyway (or perhaps you have found a way to make it work), Table 37.3 listsa few helpful suggestions about the shark-32 formation.If you add up the number of consolidations and the number of reversalslisted in Table 37.1, you will find that the shark-32 pattern usually acts as aconsolidation of the prevailing trend. Knowing this, you should anticipate a
breakout in the direction of the short-term trend. Figure 37.4 shows this typeSymmetry = 0.10 to 0.50
(A variable number that determines howsymmetrical the pattern needs to be.)
Apex Price = (H + L)/2
(This is the third or smallest day in theformation.)
Base Height = H[2] - L[2]
(This is the daily range from the highest to thelowest during the first day.)
To be symmetrical, a shark-32 pattern must satisfy the following equation:Apex Price < H[2] - (Base Height * Symmetry)Apex Price > L[2] + (Base Height * Symmetry)
In essence, all we are doing is making sure that the middle of the narrowest day is within a given distance from the center of the widest day. The distance I tested ranged from 0.10 to 0.50 in steps of 0.02. A value of 0.50 meansthat 50% of the price lies above the center and 50% lies below—perfectlysymmetrical. I ran all successful formations through the various combinationsfor both upside and downside breakouts. Those formations with upside breakouts and symmetry values between 0.40 and 0.50 perform better than theirnonsymmetrical counterparts. They have gains that range from 31% to 34%,
whereas their nonsymmetrical counterparts have returns of 30% to 32%. Fordownside breakouts, the best performing symmetrical range is narrower at0.44 to 0.50. The symmetrical sharks have losses ranging between 21% to25%, whereas the nonsymmetrical sharks have a flat 20% return.
I consider die performance improvement to be marginal and the formation needs to be almost perfectly symmetrical to show any meaningfulimprovement. Still, it is an interesting finding.In case you are wondering what a nonsymmetrical triangle looks like,look back to Figure 37.1. With a symmetry setting of 0.44, only the middle formation is symmetrical. The other two have first days in which the low price istoo far down (look at the distance between the two tops and two bottoms of thefirst and second days—they are uneven and thus asymmetrical).
of behavior. The price trend is moving downward when the formation appears.
After the formation completes and prices drop below the first day's low, theycontinue moving down.
The best performing shark-32 patterns are symmetrical about the horizontal axis, or nearly so. Run the daily high and low prices through the formulas shown in the Statistics section using symmetry values of 0.44 or higher. Ifyou are lazy and want to take an easier approach, visually find the midpoint ofthe first and third days' price range. If the two points are close to one another,then the shark-32 is symmetrical.Since you cannot be sure in which direction the breakout will occur (butlean in the direction of the prevailing trend), always wait for the breakout. I
determine that a breakout occurs when prices either close above the shark'sfirst day's high or below the first day's low.
Once prices break out, be aware that there is a better than even chance ofa throwback (upside breakouts) or a pullback (downside breakouts). PricesTable 37.3
Trading Tactics for Shark-32 FormationsTrading Tactic
Explanation
Profitable suggestion
Save your money and do not trade this one.
Trade with the trend
Since the shark pattern is usually a consolidation, expect abreakout in the direction of the prevailing price trend.
Symmetry
Choose only near symmetrical patterns.
Wait for breakout
The breakout direction is unknown, so wait for prices to closeabove or below the first day's (the widest of the 3 days) highor low, then trade with the trend.
Watch for throwback,pullback
More than half the time, a throwback from the top or pullbackfrom the bottom occurs. Place a position or add to it onceprices resume their original course.
Half-mast formation
Sometimes the pattern appears midway through a price move.
Stops
Place a stop-loss order \ above (downside breakouts) orbelow (upside breakouts) the tallest day in the chart pattern.
510
Shark-32
38
Airborne Freight (Air Transport, NYSt, ABF)
Triangles, Ascending
Oct91
Figure 37.4 The shark-32 pattern sometimes acts as a half-mast formation, marking the midpoint of a move. Here, it bisects the move from points A and B in a consolidation of the downward trend.
return or come close to the center of the 3-day formation (the triangle apex).When prices return to their original breakout direction, that is the time toeither place a trade or add to it.Take a look at Figure 37.4. Notice anything peculiar? The formationapex (at 227/s) positions neatly between the minor high—point A at 257/s, andthe minor low—point B at 191A. The shark-32 pattern acts as a midpoint orhalf-mast formation. This is useful in trying to gauge the length of the ultimate move.If you walk back into your computer room and find that your young sonhas placed a trade in a shark-32 formation while you were away, do not panic.Place a stop at the other end of the formation. For example, in Figure 37.4, youwould place a stop at 237/s, or H above the highest high in die formation (sincethe trend is moving down). If the trend was moving up, the stop would beplaced '/g below the lowest low in the shark-32 pattern. That way, when 40%of the formations fail, you will not lose too much money.
RESULTS SNAPSHOTAppearance
Triangle shape with horizontal top, up-slopingbottom
Reversal or consolidation
Short-term (up to 3 months) bullish consolidation
Failure rate
32%
Failure rate if waitedfor upside breakout
2%
Average rise
44%, with most likely rise being 20%
Volume trend
Downward
Premature breakouts
25%
Breakout distance to apex
63%
Throwbacks
58%
Percentage meetingpredicted price target
89%
See also
Head-and-Shoulders Tops; Triple Tops
Have you ever heard someone say, "I just happened to be in the right place atthe right time?" Perhaps you have even said it yourself. Investing is a lot likethat—being in the right stock just before it takes off. That is one of the reasonsthe ascending triangle is one of my favorite formations. You can make a bundle
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Identification Guidelines
Triangles, Ascending
of money if you trade it properly. But before we get to trading tactics, let us lookmore closely at ascending triangles.The Results Snapshot shows the important findings. The ascending triangle has a poor failure rate of 32%. However, if you wait for an upside breakout, then the failure rate drops to just 2 %.For upside breakouts, the average rise is a strong 44%. A frequency distribution of the gains suggests that the most likely gain is 20%. With such astrong showing, prices fulfill the measure rule 89% of the time. I consider values above 80% to be reliable, so this chart pattern stacks up well.
TourFigure 38.1 shows a good example of an ascending triangle. A horizontal trendline drawn across the minor highs and an up-sloping trendline connecting theminor lows form the characteristic triangular pattern. Volume diminishes asprices bounce between resistance at the top and support at the bottom. A premature breakout gives a hint of the coming action; less than 2 weeks later,prices break out again and move higher.Why do ascending triangles form? Imagine you are the manager of alarge mutual fund. Over the years your fund has purchased a few hundred
thousand shares of the company shown in Figure 38.1. After seeing the stockCUC International (Financial Services, NYSE, CU)Ultimate High -
513
rise for almost a year, you are getting nervous about continuing to hold thestock. You believe the stock is trading well above its fair market value and youhave spotted a more promising situation in another company.You tell the trading department to dump all your shares as long as it
receives at least 18'/2. For 2 days, starting on June 4, 1993, the trading department sells shares. Since your fund has a large block of shares to get rid of, theprice cannot climb much above 18'/2 without the fund selling shares and forcing prices back down. The selling puts a ceiling on the stock. Word getsaround that you are selling and other institutional investors jump on the bandwagon and sell too. Their aggressive selling satiates demand and the stockstarts declining. It tumbles to a low of 16 <4 on June 9, where buying demandhalts the decline. Buyers, viewing the price of the stock as a steal, demandmore shares. The buying pressure turns the decline around and prices start rising—quickly at first but more slowly as more investors become willing to selltheir shares. When the stock hits IS1/: again on June 16, your fund sells moreshares, effectively halting the advance. The stock struggles at that level for 3days. Again, the selling pressure forces prices down and they cross to the otherside of the now-forming ascending triangle. Prices rebound one last time, andhit the sell zone and stay there for about a week before being turned away byan excess supply. A call from the trading department confirms that the stockhas been completely sold.Without an overhanging supply to halt the stock's rise, prices gap up onincreasing demand and soar to 19!/4. Your fund is out of the picture, but theforces of supply and demand are not finished with the company. Others stillselling their shares force the stock price back down into the triangle proper.Prices race to the other side of the triangle, rebound off the lower trendline,then march back up out the top. Prices dance along the top trendline for a day,then catapult higher and move up.If I had to sum up the price action of an ascending triangle, I would say itforms because of a supply of shares available at a fixed price. Once the supplydepletes, shares quickly break out of the formation and move higher. Ifdemand continues to be strong, prices rise. Otherwise, the stock collapses backon itself and either regroups for another try or continues down.
Identification Guidelines
May 93
Oct
Nov
Figure 38.1 A good example of an ascending triangle. The horizontal top andup-sloping trendline on the bottom mark the boundaries of this bullish formation.The premature breakout on high volume is often indistinguishable from the realbreakout. The volume trend is downward until the premature breakout.
Finding an ascending triangle in a chart of daily price data is simple, perhapstoo simple. I recently read a tutorial in a popular magazine in which nearly halfthe illustrations purporting to be triangles were incorrectly identified. If youhave any doubt about the validity of a chart pattern, others may share thosedoubts. If others do not see the same shapes you do, chances are the patternwill not work as you expect. Under those circumstances, where there is somedoubt about correct identification, do not trade the formation. Save your
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Triangles, Ascending
money for a trade where you are sure the formation is valid. I discuss identification problems later in this section.The triangle pictured in Figure 38.1 is nearly a classic example of anascending triangle. The horizontal top line of resistance repels prices and theyrebound off a steadily rising support line below. The two narrowing lines, onehorizontal and the other sloping up, outline a triangular shape. The ascendingtrendline predicts a rise in prices, hence the name ascending triangle.Table 38.1 lists ascending triangle characteristics. The top horizontaltrendline should have prices that approach and withdraw at least twice (in odierwords, two distinct minor highs). Similarly, the up-sloping trendline should besupported by two distinct minor lows. The two trendlines meet at the triangleapex, but prices usually break out of the formation well before then.Table 38.1
Identification Characteristics of Ascending TrianglesCharacteristic
Discussion
Triangle shape
Two price trendlines, the top one horizontal and thebottom one sloping up, form a triangle pattern. The twolines join at the triangle apex.
Horizontal top line
Prices rise up to and fall away from a horizontal resistanceline at least twice (two minor highs). Prices need nottouch the trendline but should come reasonably close(say, within'/s). The line need not be completelyhorizontal but usually is.
Up-sloping bottom trendline
Prices decline to and rise away from an up-slopingtrendline. Prices need not touch the trendline but shouldcome close (within '4). At least two trendline touches(minor lows) are required.
Crossing pattern
Prices should cross the chart pattern several times; theyshould not leave a vast amount of white space in thecenter of the triangle.
Volume
Volume is heavier at the start of the formation than nearthe end. Volume is usually low just before the breakout.
Premature breakouts
Somewhat prone to premature breakouts, both up anddown. Volume on a false breakout is also heavy, just asthe genuine breakout.
Upside breakout
Volume is heavy (but need not be) and continues to beheavy for several days.
Price action after breakout
Once prices pierce the horizontal resistance lineconfirming a breakout, prices move up and away fromthe formation. Throwbacks to the formation top arecommon. If prices continue to climb rapidly, volume willprobably remain high. For downside breakouts, volume ishigh at first and usually tapers off unless the price declineis rapid, in which case volume will probably remain high.
As the triangle forms, volume is heavy
of the breakout. Often volume is abnormallyout, as if the formation is gathering streng
upside breakout comes, volume can rise su
heavy volume on a breakout is not a prerequHow can you be sure the breakout iscannot. A premature breakout is a close otrendlines. After a few days, prices return toeventually break out for good by soaring ab
premature breakouts is indistinguishable foccur at about the same distance to the trianOnce a triangle has a genuine breakout
ior like? Prices rapidly climb away from thback to the top of the formation. Volume is u
and continues to be heavy as momentum gatvolume returns to normal. If prices rise over
usually appears erratic and heavy when comWhat about support and resistance? Imomentary intersection of two trendlines, yresistance will be. It will be along the two
example of this on the weekly time scale. N
Gillette Co. (Toiletries/Cosme
93
Figure 38.2 Ascending triangle on weekly timlows the up-sloping support line of the trianhigh and low touches of the trendline.
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Triangles, Ascending
Identification Guidelines
volume trend from the formation start to the week before the breakout. Volume spikes upward on the breakout then generally declines as prices roundover and approach 1994. Prices start climbing again, essentially hugging the
trendline started by the ascending triangle. The upward trend continues forseveral years following the triangle-initiated support line. Although the matchbetween the sloping trendline and the slope of the later price action is notexact, the trend is clear. The triangle sports two minor high touches of the toptrendline and three on the bottom, numbered in the figure. Trendline touchesand prices crossing the triangle are important selection criteria.By now you may feel comfortable with correctly identifying an ascendingtriangle. However, there are some situations that may fool investors new to theformation. Figure 38.3 shows the first one. Cover up the right half of the figure and ask yourself if what you see on the left looks like an ascending triangle.The horizontal line, arbitrarily drawn to rest on top of the central peak,extends to the left and right until it intersects prices. Although the lower trendline has several instances where prices decline to and bounce off of the upsloping line, the top trendline does not have such a situation. Only in thecenter of the formation do prices rise up to and decline away from the horizontal trendline. The intersection of prices with the horizontal trendline on
the left coincidentally touches a daily high. Otherwise, the price trend is one
517
that has been declining for several days in a row. At the start, there is no minorhigh supporting the horizontal trendline.The same can be said of the formation's right side. There is no minorhigh on which the horizontal trendline can rest. Looking at the right side ofthe chart. Does this still look like an ascending triangle? I can hear you askingme to lower the horizontal trendline until it touches the two minor highs inearly to mid-December (below number 1 and midway between numbers 2 and
3). That is not a bad guess, but it is still wrong. What you are really looking atis a head-and-shoulders bottom. The left shoulder has a large volume spike(under number 1). Located under number 2, the head shows a smaller volumespike. The right shoulder shows volume that recedes even further (number 3).A true ascending triangle has at least two minor highs forming the top trendline and at least two minor lows forming the bottom.Figure 3 8.4 shows another example of a falsely identified ascending triangle. This chart has too much white space in the central portion of the triangle. A well-defined ascending triangle has prices that bounce from one side ofthe formation to the other as it nears the apex. Take a good look at the figure.This represents one of the most common identification mistakes. Novices willfind a rounding bottom and draw a horizontal line across the top and anothertangent to the bottom price action then yell, "Eureka! An ascending triangle!"Wrong.
Baker Hughes