Series 3: 6.2.3.2.1. Triangles

Taken from our Series 3 Online Guide

6.2.3.2.1. Triangles

Triangles are characterized by two converging trend lines, and they come in three types. The symmetrical triangle describes a descending upper trend line and an ascending lower line. The base of the triangle is the vertical line extending between the two trend lines at their starting point. The apex is where the two lines converge. Triangles must have a minimum of four reversal points: two to define each trend line. Most triangles, however, will have six reversal points: three peaks and three troughs.

A market close outside either trend line completes the pattern. A breakout of the upper trend line indicates a bullish pattern;

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