Triangles
in technical analysis triangles are consolidation patterns resembling the same geometrical shape when
printing price consolidates around a specific level and price fluctuation between highs and lows narrows
with each passing interval of time.
These indicate the formation of a triangle consolidation pattern the triangle pattern is clearly visible
in the chart.
When we draw two convergent trend lines that touch the highs and lows the upward trend line should touch
the highs of the consolidation area.
The lower trend line should touch the lows of the same conservation area the upper trend line represents
resistance in the lower trend line represents support.
Every time price rises and drops inside the triangle the threatening range gets smaller and smaller
is characteristic of the triangle is that price will pass.
Support and resistance.
Many times during the course of its formation the consolidation time for triangle's is no longer than
two weeks.