Termination Diagonal Triangle Pattern
The Diagonal Triangle you will see most often brings a message of market trend exhaustion. It is running on fumes in the direction of the larger trend. The pattern has a wedge appearance and the internals of these patterns are all corrective patterns building upon one another.
As an example, Figure 4.1 was a Termination Diagonal Triangle that developed in the S&P 500 mini futures contract in a 60-minute time horizon. If your company saves intraday data, you will find this pattern in the data that developed from February 10 to February 22, 2011. Figure 4.1 is a classic example of these patterns, showing you that the resolution is a fast market retracement to the origin of the wedge pattern.
FIGURE 4.1 S&P ...
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