TRIANGLE FORMATION
1 June 2016 By PDSNETA charting pattern that exhibits a series of narrower price fluctuations over time; top and bottom boundaries need not be of equal length. Trendlines are usually drawn along the upper highs and lower lows of the candles, giving the formation a triangle outline. When the narrowing candles reach the point where the trendlines meet, the continuation of the trend is determined. If the candles break up through the upper trendline, it signifies the continuation or beginning of a bull trend. If the candles break on the downside of the lower trendline, the bear trend will continue or begin. This is a continuation signal, and variations include the ascending triangle, the descending triangle and the symmetrical triangle.
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