I have recently started studying up on triangle patterns.
http://www.online-stock-trading-guide.com/symmetrical-triangle.html
I came across the chart pattern for Denbury Resources Inc, a symmetrical triangle is forming.
http://www.google.com/finance?q=NYSE:DNR
I am having trouble deciding if it is an upward or a downward trend.
The first line(Line A) into the triangle is upward trending, but the line prior to that is a large downtrend and dictates the MA.
So would you class this as either or downward or upward trend Symmetrical Triangle?
Looking at it further if you include Line A in the triangle, and use line before that as a trendline to classify it as downward symmetrical triangle, the shape stops being a "Symmetrical" triangle and become more of an ascending triangle.
So it would be more correct to leave line A out of the triangle and use it as the trend, and the symmetrical triangle becomes an upward trend.
Note there is also a significant build of volume in recent days, it could break out.
http://www.online-stock-trading-guide.com/symmetrical-triangle.html
I came across the chart pattern for Denbury Resources Inc, a symmetrical triangle is forming.
http://www.google.com/finance?q=NYSE:DNR
I am having trouble deciding if it is an upward or a downward trend.
The first line(Line A) into the triangle is upward trending, but the line prior to that is a large downtrend and dictates the MA.
So would you class this as either or downward or upward trend Symmetrical Triangle?
Looking at it further if you include Line A in the triangle, and use line before that as a trendline to classify it as downward symmetrical triangle, the shape stops being a "Symmetrical" triangle and become more of an ascending triangle.
So it would be more correct to leave line A out of the triangle and use it as the trend, and the symmetrical triangle becomes an upward trend.
Note there is also a significant build of volume in recent days, it could break out.
