A range that narrows as highs fall and lows rise
A triangle forms as each high comes in lower and each low comes in higher, squeezing the range. It pictures buyers and sellers moving closer together with neither side settled. When price finally leaves the squeeze, the orders that piled up tend to fire at once and the move is large. The shape itself does not say which way it will break.
Highs of 1,200, 1,150 then 1,100 against lows of 900, 950 then 1,000 draw a triangle.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.