Category: Money tips Release Date: 2006-12-07
Elements:
1, the most common of the triangle formed by a series of price fluctuations, each fluctuation is smaller than its former, every minor can not be reached before the top of a high degree of rebound, and each small retracement, are stopped at the bottom of the previous one above.
Note: Prices follow a similar sine wave shock attenuation, the gradual trend of convergence does not break first rebound high point (or former high), does not break before the next one at the bottom (the bottom of the gradual elevation)
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2, symmetrical triangle to complete the process, trading volume has been shrinking, and perhaps the rules is not obvious, but as time goes on, this change will be quite obvious. When the volatility of prices to more and more narrow near the apex of both sides of the cross, the trading volume will decline to a very low daily turnover.
3, right-angled triangle the actual border line of a horizontal shape, the other one to form a boundary line and the horizontal angle. If the top of the line level, the bottom of the dumping line somewhere in the right section of the chart and the top of the line of intersection, then the triangle up triangle for the class. If the bottom line level, at the top of the line oblique, then the triangle for the fall class.
4, triangular breakthrough could eventually closing the distance from the pattern edges of 3% to do to confirm. If you need to price up a significant increase in trading volume in evidence. The lack of trading volume can not be considered effective price movement. However, it breaks down when the growth in trading volume do not need to be confirmed.
5, practical use in other situations need to know:
(1) The triangle is not a very good measurement of targets in future. But the rules are available, grasp the rules and skilled in using much better than ignorance. Suppose there is an increase in movement patterns from the beginning of a rebound at the top of the first start, as a parallel to the boundary line at the bottom of a straight line, the line will slip away to the right shape. Prices have been rising and is expected to reach this line, and, in the form of breakthrough from the price increase trend of the angle and speed into the shape features are usually associated with the same characteristics of the previous trend. This rule allows us to arrive at the price to reach the general measuring line time and the price level, the same rule applies to drop sports.
(2) The triangle does not indicate a trend reversal. On the contrary, unless very unusual circumstances, they are more inclined to presage better known as "consolidation" forms.
(3) The little triangle chart indicates which direction the price break through the triangle clue, until the breakthrough acts of the last occurrence.
(4) does not break through the border before the price towards the apex of both sides of the cross-promote the farther the form of power or energy may be weaker.
(5) the current rebound in the top surface 2 has been formed under the tilt of the upper part of the boundary line, starting from the lower part of the boundary line of the third and to a moderate increase in bounce rate of the upper part of the boundary crossed the first line, this movement is not to form Recognition breakthrough volume, in the absence of more than one form at the top of the highest point before the stop-down. When prices then back to the patterns, they must be the upper part of the boundary line of the original waste, and then from the first and third rebound at the top to re-draw a line.
(6) a significant trading activity for the beginning of the symmetrical triangle, it is easier to break down a false signal, rather than the beginning of the real decline. In particular, a breakthrough occurred in the prices have been gradually advance to the triangle vertices, the more likely the strange phenomenon.
(7) Only right-angled triangle is given prior notice about their wishes.
(8) break sooner, the more movement will not be false.
(9) for more than three years, the great triangle is best ignored as useless information.
Edited in the gold-line
