Loading ...Triple top breakout yesterday
Anybody still do P&F charting? According to stockcharts (using their preferred brand of P&F methods), GDX experienced a “triple top breakout” yesterday. Anyone think this is significant or is it just noise to be disregarded?
Bullish breakout P&F patterns (via stockcharts):
“There are five bullish breakout P&F patterns. The most basic P&F buy signal is a Double Top Breakout, which occurs when an X-Column breaks above the high of the prior X-Column. From this basic pattern, the bullish breakout patterns become more complex and wider. The wider the pattern, the better established the resistance level and the more important the breakout.
The Triple Top Breakout takes the Double Top Breakout one step further by adding a resistance column. Two consecutive X-Columns define resistance with two equal reaction highs. The third X-Column breaks above the prior two X-Columns to forge the Triple Top Breakout. Classic Triple Top Breakouts are five columns wide: three X-Columns and two O-Columns.
These patterns can mark reversal breakouts or continuation breakouts. Distinguishing between reversal and continuation depends on the prior move. A Triple Top Breakout that forms as a base after a decline would be deemed a reversal pattern. A Triple Top Breakout that forms as a consolidation after an advance would be viewed as a continuation pattern.”
Thanks Jim. You can be the resident P&F guy
I NEVER understood that methodology but I understand it has been around for a long time
I don’t know anybody who uses it any more but maybe you can become an expert.
🙂