SNSN schreef op 7 november 2016 14:45:
[...]
Actually it depends on your position (long / short).
A 'turning point' pattern increases the prob for (current) regular stock-price component to be exhausted, indicating so far a (possible) "change" in existing (sub)trends:
- 'change' in current downtrend --> (possible) beginning of a new uptrend
- 'change' in current uptrend --> (possible) beginning of a new downtrend
As for the (falling / rising) 'top/bottom-lines', shortly speaking they usually confirm the 'change' if/when broken definitely.
So, by breaking (definitely) the "falling-top-line" for sub-downtrend since Oct 31 the stock is trying to confirm a 'change' (indicated on Nov 4 --> read last week posts) in current sub-downtrend, and possible beginning of a new sub-uptrend.
For more details just google it.