Downtrend fan patterns

[GreatPig]

Noticed mention of these a couple of times recently in the Guppy newsletter. Apparently these fans can indicate a gradual trend reversal, or at least a slowing of the downtrend.

An example which has subsequently led to a breakout is FLX. This was mentioned in the most recent newsletter:

And another mentioned a week or two ago which may be heading that way is TLS:

I don't know what their fundamentals are at the moment, but perhaps worth keeping an eye on.

Cheers,
GP

 

[Milk Man]

Give us a run-down on these fan thingo's hey GP. I've never read anything on them. "Fibonacci fan" rings a bell but I wouldnt know one if it bit me. I dont have enough indicators and patterns clouding my judgment already so..... Nah, I like having somthing for re-assurance so it will do me good. Can't hurt to give everyone some free re-hashed Gup either.

 

[GreatPig]

Well I don't want to directly copy from the Guppy newsletter, but there's a bit of info here and a little at the end of this article.

Essentially when prices break through a trend line but then continue in the same direction, and later break that trend line as well but still continue in the same direction, then it can signal the start of a trend reversal - apparently most common in downtrends but also for uptrends.

Cheers,
GP

 

[Milk Man]

Thanks dude. I used to use the thesaurus function in school to dodge plagarism rules Ahhhhh encarta, my old friend.