When we talk about price action and chart patterns we usually see examples that have happened years or months ago. In Brokinator we like to see real examples, so here we go!
A triangle is a particular case of triple top. If we only draw the upper line we have a triple top, but we can notice that drawing an uptrend line in the lows make sense.
This kind of pattern in the middle of a trend is usually a great signal of trend continuation so today is a good day to buy with tight stops.
The volume is decreasing; this is a pattern confirmation for triangles. Personally, I like to check for Fibonacci ratios in the triangle waves. You always have to compare up waves first (1-3-5) and then compare the other waves (2-4)
Wave 3 is 50% of wave 1
Wave 5 is 38.2% of wave 1
Wave 4 is 61.8% of wave 2
This perfect Fibonacci ratios increase the importance of this triangle.
¿Will you trade in this situation? ¿What is the best strategy here?