The Noose is Tightening

The development of the triangle patterns I have been mentioning in the videos since last week, are getting closer to their completion. Triangle patterns are considered “continuation patterns” which means they are typically resolved in the direction of the primary trend, which is obviously lower. The patterns are usually broken when they have reached 60-80% of the way to the apex of the formation. A price objective is established by subtracting the height of the pattern (approximately 46.00-42.50 = 3.50) from the break down level (near 43.00, 43.00-3.50 = 39.50). As with all technical patterns, they give us an idea of a potential market scenario and should not be traded blindly, have your stops in place on all trades. Defense wins the game!