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Finance: What are Ascending and Descending Tops and Triangles? 2 Views

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Description:

What are ascending and descending tops and triangles? Ascending and descending tops and triangles are used to describe market performance graphs. The tops are the peaks on the graphs; if they are ascending then the market is improving with each time period, if they are descending the market is dropping with each time period. The triangles are created by making a line through the bottom of these shapes that signals either upward or downward trends in the stock or overall market, depending on the type of top.

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Transcript

00:00
Finance a la shmoop what are asending and descending tops and triangles well
00:08
it's almost like a stock breakout to the good is being squeezed out the end right [Ascending triangle stock prices on a graph]
00:13
here... well in this pattern it's like the stock can't help but go up at
00:17
the end of the triangles here well ascending tops and triangles is a trading
00:22
pattern used by Chartist style traders ie traders who just focus on the graphic

00:27
representation of stock performance, well the same holds true for descending tops
00:32
and triangles basically take everything we said here and invert it..Oh head rush [Triangle inverted on graph]
00:38
there flip that back over - Note the pattern here of ups and downs but as
00:43
time progresses the blue line at the bottom acts as if it's a lower limit [Arrow points to blue lower limit line]
00:47
where the stock can't bounce through that virtual floor it just goes up and
00:51
then one day like as zit that's bursting at the seams well the stock pops and
00:55
creates a new set of ascending tops and triangles hopefully it doesn't leave a
00:59
pock mark on your portfolio well when it does that [Man holding up portfolio]
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