Related Topics
Asian Markets , Stocks

See How a Time-Tested Chart Pattern Identified a Key Juncture

Prices nearly triple in 2008-2018

by Bob Stokes
Updated: November 19, 2018

Classic chart patterns become classic for one important reason: They work!

Consider a contracting triangle. Elliott Wave Principle, the book by Frost & Prechter, says:

"... a contracting triangle['s]... apex coincides with a turning point in the market."

I want to show you how Mark Galasiewski, one of our Global Market Perspective editors, used that knowledge to spot an important turning point in Taiwan's stock market.

The contracting triangle that Mark discusses started all the way back in 1990.

Here's the Global Market Perspective chart he showed on Oct. 31, 2008 (wave labels available to subscribers), along with what Mark said:


The [Taiwan Index] is nearing the ... beginning of a [big wave] to new all-time highs. ... Although Taiwan is a laggard in the region, its contracting triangle since 1990 actually makes it one of the most qualified for future success. ... The TAIEX has the "right look" to end its 18-year-old triangle at the end of the current down wave.

More than nine years later, the Taiwan Index had nearly tripled in value, climbing from about 4200 to north of 11,200.

The November 2018 Global Market Perspective provided an updated chart (below). The red arrow points to the juncture where the November 2008 Global Market Perspective turned bullish.

1811aff_TW Quarterly

Mark goes on to discuss what he expects next for the Taiwan Index.

This is just one example of how EWI's global analysts have kept subscribers ahead of financial turns.

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