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Nice explanation. I would also like to add that depending on the...

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Jnnl

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148

08/07/20

17:55

Post #: 45730568
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Originally posted by pmd3nka: ↑

Rick, re your triangle:
(1) Decreasing volume, not shown on your chart, is also needed to verify a triangle.

(2) Whether an ascending or descending triangle, the pattern is incomplete until there is a breakout - preferably on increased volume. Even then, the pattern & breakout can be invalidated if there is a turnaround bringing the price back *into* the triangle.

(3) Traditionally, triangles were considered to be weaker if the breakout occurs very close to the apex.

At least this was my understanding from the classic book by Edwards & McGee. There may well be more up to date interpretations.

Cheers.

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Nice explanation.
I would also like to add that depending on the context of the pattern and the actual trend.. Many don't realise that decending triangles can also be interpreted as a bullish pattern in some instances, and vice versa for ascending triangles and other continuation patterns for that matter.
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