
I am not sure if the pattern between the trendlines is a triangle but I treated it as a triangle. Trendlines drawn from highs and 3 lows. I remember reading somewhere that there should be at least 5 points touching the trendlines, not enough white space within the triangle and volume contraction as the pattern develops and surge in volume on break out, as the main criteria. Pattern on QLD seemed to meet all the criteria. Entered on the break of the triangle and exited on full extension.
4 comments:
Thomas,
Nice trades today! Keep up the good work.
Tyler
Thanks Tyler. Felt good to be on the right side.
Yes, that's a triangle continuation pattern. As you noted it meets the criteria. Price/volume really contracts the most just prior to BO. Probably, would have expanded more if this wasn't a FED day.
Thanks Jamie. Liked the volume surge on breakout.
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