Triangles And T ends
Building positions is an essential exploitation of a
successful trade, and triangle formations can be key
to doing so.
The classic technical trader relies
upon various chart formations
for determining market tops,
bottoms, and consolidations.
Although the triangle chart
formation can be a trend reversal
or a consolidation, I want to show
you how to use it as a continuation pattern,how to
identify it as it develops,and how to trade it.
What are triangles? They are simply sideways
trading action, with the widest part of the correction
occurring earliest in the development of the pattern.
As the market marks time,the trading range narrows,
forming the shape of a triangle.
Why do triangles occur? According to the classic
tome Profits In The Stock Market, by H.M.Gartley: