On Symmetrical Triangles by Thomas Bulkowski
You might have seen triangle formations and wondered what they were all about. You might have been caught on the losing side of a descending triangle and wondered what happened. For those of you who've wondered what was going on, here's the first part of a two-part refresher course on the three basic types of
triangle formations and how to use them in your investment decisions.
Before I buy a stock, I search the price chart for familiar patterns. The last thing I want to do is to purchase a stock, only to see it drop down beyond my stop, resulting in a loss. Checking for technical patterns allows me to look for some indication that I should not buy a stock. Over time, I find that my memory for various chart patterns gets somewhat fuzzy and I need to refresh my memory for what to look for. Here, then, is a description of symmetrical triangle formations and their significance in my battle plan in the market.