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. Here, then, is a description of symmetrical triangle formations and their significance in my battle plan in the market. Note the narrowing stock price, as the minor highs are lower and the minor lows are higher.
Volume generally diminishes as time progresses, especially before the breakout.
Volume on that day had diminished to 10,500 shares. Inc. All rights reserved. Issue Archive or October Contents page. Inc. All rights reserved. Free E-mail Newsletter.