DESCENDING_TRIANGLES - DESCENDING TRIANGLES Trading...

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DESCENDING TRIANGLES Trading Opportunities in Triangles 10/15/02 10:39:34 AM PST Even bearish formations are tradeable as this weekly chart shows via a descending triangle. Security: PANL (Nasdaq) Position: N/A Universal Display Corp. has been a volatile trader since its big breakout move in late 1999. Now you can see a multi-year pattern in the form of a bearish descending triangle. Those that spotted this pattern had the opportunity to make two exceptional trades - a short in early summer and a recent long position three weeks ago, as shown on chart. The shorting opportunity came at the upper trendline touch where the candlesticks were dubious with their long upper shadows (tails) while short-term stochastics and longer term CCI (commodity channel index) both flashed overbought signals. The patient shorter was handsomely rewarded with a short at $10 and a cover around $5 over 10 weeks.
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Graphic provided by: stockcharts.com. The next good opportunity came a few weeks ago for traders looking to go long. The stock did
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DESCENDING_TRIANGLES - DESCENDING TRIANGLES Trading...

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