The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?
The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?
For me the weekly candlestick chart is probably a better picture.
More like a triangle. Break below and pushing against Bollinger band. The bottom of the triangle is also medium term trend. MACD turning down... all seems bearish for recent weeks at a quick glance. I'd be watching for a move above Bollinger as indication of turnaround or below for further weakness.
The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?
I would also use the weekly and take note of the Bearish Divergence of (MACD) Momentum, where momentum has completely broken down sub-zero.
I also use a lesser-known observation, the "4th attempt breakout" - in this case break-DOWN - as described with examples on http://bartrade.biz/trades/4th.htm
The Daily Trinity chart underpins that assessment. (The arrows mark the points where trades have broken above/below Trinity's 3-day Volatility Envelope.)
I personally think your taking a part section of the predominant pattern which is clearly a rectangle.
From Mid July.
MACD is useless as it will and is whipsawing in the range.
Bollinger is just recording a narrowing of the Standard deviations of the 20 day M/A which would be expected
in a range.
To analyse look at price action at the top and bottom of the rectangle range for clues on which way it is likely to break out.(Volume and range)
I personally think your taking a part section of the predominant pattern which is clearly a rectangle.
From Mid July.
MACD is useless as it will and is whipsawing in the range.
Bollinger is just recording a narrowing of the Standard deviations of the 20 day M/A which would be expected
in a range.
To analyse look at price action at the top and bottom of the rectangle range for clues on which way it is likely to break out.(Volume and range)