The symmetrical triangle on Ford is very interesting and not just because it is a symmetrical pattern. There are some other things going on here, such as the width of the Bollinger Bands getting very narrow. When these bands get narrow it portends a sharp break one way or the other, much like the symmetrical triangle. A straddle is a smart way to play this pattern.
I personally think that the price is going to break higher as the trend going into the narrowing of the Bollinger Bands was up and typically a stock will breakout in the direction of the trend just before the bands narrow. It is going to be very interesting to see what happens!!
Keep and eye on this one as it might just offer some educational value!!
No comments:
Post a Comment