DOW Expanding triangles

ChartMan

Legendary member
5,580 46
Going back to 1997, I can't find any examples of expanding triangles until we get to post Sept 11th. The first one gives a target of nominally 650 points ( width of the 'mouth'), leading to either 8344 or 10,350.As it happens, this turned out to be a bull move, and the final peak hit target on 7/1/2 at 10,335. Notice how the action is biased to the topside of the triangle.
Now looking at the chart, there is a triangle within a triangle forming.Again, the action is biased towards the topside. The bottom of the mouth is about the 9400 mark where the two downsides are converging. The top of the mouth is at about 10K for the inner triangle and 10,500 for the outer triangle. If the rule of history repeats itself is to follow, the we end up short term from the inner triangle at 10,600, and the outer triangle at 11,600. It folows that for the latter to happen, we need to see the inner triangle breaking out , and providing a topside bias to the outer triangle, by way of trending in an up channel between 10k and 10,500 . Timescale wise, the inner triangle needs to be trading up in the 10K-10,500 range in the next 2 months or so. The outer triangle being in the order of 6 months.
Any takers for the DOW 11,600 in August? The opposite to this is 8800 and then 8300.
 

Attachments

AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock