Triangles

For a precursor on triangles, click here.


AKS - ascending triangle

CELG - symmetrical triangle

MMM - descending triangle










Trading for a Living
Valid breakouts occur during the first two thirds of a triangle. It is better not to trade breakouts from the last third of a triangle. If prices stagnate all the way into the apex, they are likely to remain flat. A triangle is like a fight between two tired boxers who keep leaning on each other. An early breakout shows that one of the fighters is stronger. If prices stay within a triangle all the way into the apex, that shows that both boxers are exhausted and no trend is likely to emerge.