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Saturday, 08/30/2014 12:09:49 AM

Saturday, August 30, 2014 12:09:49 AM

Post# of 2804248


Bullish and Bearish P&F Triangles represent price consolidations that often precede a substantial move. This coiling of prices is similar to the tightening of Bollinger Bands. Volatility declines as the Bands narrow and as a Triangle coils tighter. A volatility contraction is often followed by volatility expansion, which produces the breakout or the breakdown. Short triangles (4 columns) after a sharp advance or decline are more likely to be continuation patterns. Large triangles (6+ columns) are more likely to mark a reversal. Regardless of the bias, a triangle is not confirmed until the Double Bottom Breakdown or Double Top Breakout.


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