KL Composite Index - Diagonal Triangle Patterns ?

Well I have tried to play in this share market but it is not easy to make some good profit in this share market. The gap of profit was so thin. If you are not careful enough, you might even turn to a loss. So right now we must try to excess what would really happen to the KL Composite Index.

Based on the chart, we need to be very cautious. It seems that the KL Composite Index is performing a Diagonal Triangle Patterns. In order to cancel this pattern, the KL Composite Index need to go higher or it might go the other way round. As we can see many analysts in Malaysia have called that the Malaysia share market is already overbought and it is overdue for correction but it didn't happen since the bull started to take charge in March. Maybe the time has arrive ................. ? At these moments we don't know yet whether the time has arrive as the sentiment still look good.

Based on the world equity market performance until Tuesday closing (09.06.2009), it seems that the corrections have started. But I'm not sure whether it would be a correction or it is just a profit taking. The Straits Times Index (Singapore) and the Hang Seng Index (Hong Kong) have taken a pause these few days and the Dow Jones Industrial Average still look manageable if the index still able to stay above 8,600 points.

Here are some of the detail about Diagonal Triangle Patterns.

A diagonal triangle is a motive pattern yet not an impulse, as it has one or two corrective characteristics. Diagonal triangles substitute for impulses at specific locations in the wave structure. As with impulses, no reactionary subwave fully retraces the preceding actionary subwave, and the third subwave is never the shortest.

However, diagonal triangles are the only five-wave structures in the direction of the main trend within which wave four almost always moves into the price territory of (i.e., overlaps) wave one. On rare occasions, a diagonal triangle may end in a truncation, although in our experience such truncations occur only by the slimmest of margins.

Ending Diagonal

An ending diagonal is a special type of wave that occurs primarily in the fifth wave position at times when the preceding move has gone "too far too fast," as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B-C formations. In double or triple threes, they appear only as the final "C" wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

Ending diagonals take a wedge shape within two converging lines, with each subwave, including waves 1, 3 and 5, subdividing into a "three," which is otherwise a corrective wave phenomenon. The ending diagonal is illustrated at above diagram shown in its typical position in larger impulse waves.