Basic Techniques  |  FEB 2000

Triangles And Trends by Thom Hartle

Triangles And T ends Building positions is an essential exploitation of a successful trade, and triangle formations can be key to doing so. The classic technical trader relies upon various chart formations for determining market tops, bottoms, and consolidations. Although the triangle chart formation can be a trend reversal or a consolidation, I want to show you how to use it as a continuation pattern,how to identify it as it develops,and how to trade it. What are triangles? They are simply sideways trading action, with the widest part of the correction occurring earliest in the development of the pattern. As the market marks time,the trading range narrows, forming the shape of a triangle. Why do triangles occur? According to the classic tome Profits In The Stock Market, by H.M.Gartley:

by Thom Hartle