ABSTRACT
In this chapter, the authors illustrate that the method of deriving the Triangle formula is not easy to explain in words, but the reader can familiarize himself with it quickly by studying its application on several of the actual examples. They argues that Symmetrical Triangles as Reversal Patterns, yet the authors example has turned out to be, instead, a Consolidation Pattern, that is, only a sort of resting stage in a continued uptrend. While the process of contraction or coiling, which makes up the price action of the Symmetrical Triangle Pattern, is going on, trading activity exhibits a diminishing trend, irregularly perhaps, but nevertheless quite noticeably as time goes on. The beginner in technical chart analysis is quite naturally prone to look for Triangles constantly, and will often think he has detected them when, in fact, something entirely different is in the process of development.
