Here’s Why Triangles Work Better
Sometimes we get so caught up in
labeling a chart as a particular kind of setup that we end up “not seeing
the individual trees in the forest.”
10:13:05
Intraday
Setup Alert
From the Nightly Daytraders
Report Linear Technologies (LLTC)
is finding support once again around the 13-Day EMA on the daily chart. Intraday
action has the stock forming a potential FlipTop
buy side reversal pattern. Triggers would come in at the session high of 29.70.
Currently, the stock is off .47 at 29.55.
Obviously, you can see from the above price action that we were “on the
right trail,” as we saw LLTC as a reversal long out of the FlipTop pattern.
What I failed to notice at the time was the “shortcut” through the
trees into the clearing ahead. The shortcut out of the woods in this case,
was our trusty trail guide, the symmetrical triangle. So remember, when you’re
looking for a way out, it pays to look for help from all of your friends.