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Descending Triangle Breakouts - My World

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Hi NM4 and bugs

Back from a weeks break ... DVN indeed added to my watchlist ... MFF? not sure not enough trading history for me
 
This thread has been quiet for a while.

RDF looks to be forming nicely, it's a weekly chart so may take some time to play out, will be watching with interest.
 

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Hi N4

I've been licking my wounds and examining where I went wrong as I lost about 30% of my capital in the recent past ...

Back on the horse now and a few good ones shaping up so be back posting soon ...
 
Hi Snake

Yes ... all moving to plan ... nicely geared via CFD so lets see what it can do
 

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Just pulling this one back out. Would you consider the weekly and monthly charts of MKY be in a decending triangle breakout??

Another potential would be WMT?

Appologies as i dont know how to post charts...
 
Dutchy3 said:
Hi N4

I've been licking my wounds and examining where I went wrong as I lost about 30% of my capital in the recent past ...

Back on the horse now and a few good ones shaping up so be back posting soon ...
Click to expand...

Nice to have you back Dutchy, the main point is that you're still in the game AND able to admit that YOU (rather than the market) took a wrong turn somewhere. The longer you survive the more experience you will have. Add sound judgment to that and you will be well ahead. So congratulations on surviving!

From an educational and trade management perspective I'd be interested in any critiques you may have of your experience- was a 30% loss of trading capital a foreseen drawdown for your method? or did you make some mistakes (eg not following a stop loss/profit stop or trading charts which didn't satisfy your entry criteria)? Might be worthy of another thread if it's not related to your methodology as outlined previously in this thread by you.

fwiw my biggest mistakes stem from poor position sizing (positions too large in relation the instrument's risk/volatility profile) and not following stop losses- in that order. Thought I'd share a few thoughts in support as a fellow trader, I'm no trading expert by any measure (but hope to be!).
 
baboon said:
Just pulling this one back out. Would you consider the weekly and monthly charts of MKY be in a decending triangle breakout??

Another potential would be WMT?

Appologies as i dont know how to post charts...
Click to expand...

Hi baboon, Welcome to ASF!

Nice to see you getting involved in this thread.

We do have a dedicated section here on ASF to help with admin and generic issues like posting and editing charts- see the ASF Announcements Forum which has a thread on how to post a chart.

Good luck!

RichKid
Moderator
 
baboon said:
Just pulling this one back out. Would you consider the weekly and monthly charts of MKY be in a decending triangle breakout??

Another potential would be WMT?

Appologies as i dont know how to post charts...
Click to expand...

MKY probably quite doesn't qualify yet due to no real support base although one looks to be forming at 3.5c, has a bit more work to do yet imo, but 1 to watch I think.

WMT is probably abit closer and has a more "solid base", another one to watch.
 

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Hi RichKid

Actually the drawdown and sideline caused me to re-examine all aspects of my trading plan. I should now disown this thread as I no longer use this method ...

Decending Triangle breakouts, although occassionally quite spectacular, are not high enough on my probability curve to make trading profits. On a weekly chart I do find them at the base of trends that end up been signal points for new weekly trends ... but the time wait can be crippling ...

I'll post a new thread soon once I have enough actually trades under my belt to give some examples, both historical and real time.
 
According to the text books (none in particular) are descending triangles not meant to be monitored for a break down through support? I think any triangle is worth watching because you are watching a pattern/trend that can not continue, you can see when something has to give be it support or resistance.
 
RIV appears to be forming a descending triangle pattern between $9 and $11.25. (Difference of $2.25)

Support is around $9.00. Breakout would be around the $9.75-$10 range with an upside target of around $12, ($9.75 + $2.25).

Also to note is the head and shoulder pattern, IF we breakdown through $9 then we could be looking for a target of $6.75, ($9 - $2.25).

Trading for Friday was positive, in the sense that $9 was tested early in the day and then buyers came in and bought the stock up to close at $9.40.

I hold, so fingers crossed the breakout will be upwards.

Cheers
Peakey
 

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hey, i havent done much technical analysis. however this chart (IAU) seems to be in a descending triangle and could be due for a breakout. Its been in a down trend for sometime now. I would love people opinion on this. Thanks
 

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Heres one I posted up the other day regarding PRE. Original Post - "1st is a daily chart with a break up on good volume with a possible short-term target of 0.06cps."


Next is the following 2 days movement.
 

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watch this one like a hawk peaky - classic head and shoulders formation there which will have the chartists shorting it like there's no tomorrow if it drops below $9
 
Heres an interesting chart for a possible Descending Triangle Breakout. Seems to be abit of a repeated pattern, however the close on friday for me was below the longterm uptrend so abit of caution may be needed.

[EDIT] - the chart is of AAR.
 

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I was reading the start of the thread thinking to myself "arent descending triangles usually the sign of a breakdown"..........

Then I read the last page and see the trading strategy has been revised........

Interesting to see so many adopting the method (at least taking it into good consideration). How long were you SUCCESSFULLY using descending triangle breakouts for Dutchy (as in successful trial and error timeframe before you started this thread)?

Good to see you taking some initiative though and thinking outside the box.
 

As this thread has now strayed beyond its original parameters it will now be closed. Refer to Dutchy3's final post above and the first two pages for an outline of the method.

Some posters have merely posted descending triangles rather than those which fit all of Dutchy3's criteria. If you would like to track descending triangles on an ad hoc basis then please feel free to start a new thread....or if you find a descending triangle in a particular stock you may choose to post in the respective thread for that stock.

Thank you for sharing your trading experiences here Dutchy3, we look forward discussing your 'new, improved' method! Good Luck!!
 
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