"I trust the soundness of our financial system".."where's the emergency exit?"
A Descending Continuation Triangle features two converging trendlines. The bottom trendline is horizontal and the top trendline slopes downward. The pattern illustrates lows occurring at a constant price level, with highs moving constantly lower. The pattern displays two highs touching the upper trendline and two lows touching the lower trendline.
Trading Considerations
Duration of Pattern
Consider the duration of the pattern and its relationship to your trading time horizons. The duration of the pattern is considered to be an indicator of the duration of the influence of this pattern. The longer the pattern the longer it will take for the price to reach its target. The shorter the pattern the sooner the price moves. If you are considering a short-term trading opportunity, look for a pattern with a short duration.
The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful.
Criteria that Supports
Look for a region of support at the bottom trendline and a line of resistance at the highest high of the Triangle.
Compare prices to the 200 day Moving Average. When prices are close to or touch the 200 day Moving Average this signal is considered stronger.
A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern. The volume spike should be significantly above the average of the volume for the duration of the pattern. In addition, the volume during the duration of the pattern should be declining on average.
All major U.S. Indices end the third quarter on a historic note. The Dow and S&P 500 experienced their worst-point decline in history set on September 29, 2008. The Dow and S&P 500 had their fourth consecutive quarterly drop, tumbling 4.40% and 9.01% respectively. The NASDAQ Composite fell the most among the major Indices for the quarter, down 9.19%.
Six out of ten sectors in the S&P 500 end the quarter with losses over 9%. During this quarter, only the Consumer Staples sector is up with a gain of 4.13%.
Commodities declined across the board, with only Pork Bellies and Sugar up for the quarter.
**Crude Oil has dropped nearly 29% in the past three months.
The U.S. Dollar strengthened for the quarter, appreciating over 10% versus the euro and pound sterling.
Dow Top Performers QTD
Dow Worst Performers QTD
S&P 500 Top Performers QTD
S&P 500 Worst Performers QTD
My portfolio is up 247% this month and I made 60% on yesterday's volatility alone.
Thanks JL
Craig
My trading account has increased in value $53,000.00 between 8/29 and 9/29 thanks to guidance by John Lansing. I never had more than about $20,000 at risk at any one time, and usually more like $12-$15,000. I've tried a number of paid investment advisors over the years, but never found one half as effective as John. Not every play works - as he will tell you - but overall, he has an uncanny ability to pick entry and exit points. Thank you, John, for helping me move out of the perpetual loser's category into the winner's circle and recoup all my losses over the past many years.
Keith
Jl - you really are teaching us to "fish for life". My account is up 70% over the past month. Keep up the great work! You are a true gem!
kathysp
