The Triangle Corrective Patterns

Triangles are the most misunderstood patterns of all. However, people continue to believe these are the easiest patterns to identify because they only look at the outer trend lines. If you follow that assumption you will get into a lot of trouble fast.

Figure 3.9 beautifully demonstrates two different markets producing triangle corrections. The upper left price chart displays a contracting triangle. The lower left chart is an expanding triangle.

FIGURE 3.9 Contracting and Expanding Triangles

Source: Aerodynamic Investments Inc., © 1996–2012, Advanced Trading Seminar, www.aeroinvest.com; TradeStation.

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