Descending Triangles...?!?

[Ugly_Dog]

I assumed he was referring to image right above!?

[snprr]

Spec, okay no problem. It's been kind
of crazy this week. Whenever you get a chance. UglyDog and Spec, I was referring to the first chart. I understand most of it. The projection is a little sketchy for me.



thanks,
snprr

[Speculator]

snprr,
In the first chart projections I didn't apply anything more than simple logic(tends to work best most of the time) – after 3 rejections from the bottom of the triangle the logical direction was up. A run to the top of the (big) triangle was also needed in order to keep it actual. The third rejection from the triangle’s bottom didn’t make higher high, so the price was expected to go to the nearest support area before a run up (the cross of the good fitted green pitchfork bottom and .2240) -the first light blue arrow. Second blue arrow – the upside move was most likely to fail to brake triangle’s top …it was headed to a multiple resistance congested area(triangle’s top, March 11’s high, 50% of Fibo Fan projection of the move .1375 to .2930 , …etc.). Third blue arrow - the price slid more than expected …that was welcomed in our case.
Hope this helps…

Regards…

[Speculator]

Snprr,
I’d like to clarify something else that might be confusing. The name of the thread “Descending triangles” is probably a bit misleading… I wanted to change its name to “contracting triangles”, but once you open a thread you can’t change the name anymore. So, in the first chart you might be talking about the smaller (about 5 day) descending triangle, and how I decided that it’ll break its supply(upper) line(second blue arrow)?!? The answer is simple…. I think that 80% of the triangles in forex at some point end up being symmetrical triangles (at least those that you can see on the 1-4hour charts and continue about 1-2 weeks, as in our case) …so, that played major role when projecting the second blue line penetrating the supply line of the smaller descending triangle and going to the top of the bigger symmetrical triangle.
Hope this clears most of the confusions in the chart…

Cheers…

P.S. Last 3-4 days formed another triangle… but this time Expanding one. See chart.