lowtrade

[lowtrade]

Expanding triangle pattern is the inverse of the symmetrical triangle. And as with either breakout direction odds are 50%/50%.

So now it's time to teach how I use this pattern. There are 2 things to look for. When watching to see which way to expect expanding triangle breakout.


Price reverses mid stream to next trend line. (upper or lower)




Price double taps trend line before reversal to next trend line. (upper or lower)




Notice the one chart shows a reversal mid way to next trend line. And the other shows a double tap before pattern continuation.

I found these differences are the key. Expect a reversal, if you see a mid term reversal in price direction. And expect a continuation, if you see a double tap at trend line.