By Guy Bower and Warwick Schneller*

Triangle chart patterns are a common sight within most charts and can be applied to a wide variety of markets and trading periods. They are a common occurrence and are all too often dismissed as being “too subjective” or things without a fundamental basis. This article hopes to dispel this way of thinking and show that triangle chart patterns derive their value from the fact that they graphically show the market’s psychology and underlying fundamental outlook, often before the fundamental evidence emerges.

By Guy Bower *
Posted: January 18, 2008

Have you ever sat down and really listened to what an economist has to say? Just a few months ago, a bunch of Sydney’s top economists presented their ideas on where Australia was going in 2008. At the time, the Aussie Dollar was approximately US80 cents. All but one economist called for the Dollar to be heading lower from there.

One economist said the Aussie would hit US90 cents. This was greeted with all sorts of dubious murmurs from the audience. The little Aussie subsequently traded higher and through 90 cents, hitting a high of 94 cents in November. As for the other guys: Well, if the best economists in Australia cannot get it right, then what hope do we have?