ebook essays pieces of the puzzle
Tuesday, April 3rd, 2012
a triangle

When it comes to percussion instruments, a triangle is a bit player, only showing up now and again.  But it can add interest and definition.

So too the triangles that technical analysts favor.  John Murphy wrote that they provide “an interesting combination of price and time.”

The main graph above shows the price of silver over the last forty years or so, defined by its two explosive moves.  Now the metal is consolidating and triangle watchers are on alert.  The smaller graph shows the action of late, with the triangle lines drawn in as from a page of “global trend lines” in a technical strategies piece from Bloomberg that I saw.

Given the prevalence of chart watchers out there and the high level of interest in silver, when an edge of the triangle is struck, you’re sure to hear it.  (Chart:  Bloomberg terminal.)

a new guide

Once a quarter I update the PDF guide to the research puzzle.  In it, you’ll find a wide range of postings about the investment world, organized by topic.  Among the nuggets is a piece about the art of triangulation — not on the reading of charts, but on the importance of incorporating a variety of perspectives in analysis.