The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!
It is mostly a continuation pattern. It constitutes a pause in the market after which a decisive breakout will resume in the direction of the prevailing trend –i.e. a downtrend. It requires 4 data points, 2 highs and 2 lows. The lower side of the triangle connecting the lows is horizontal, while the upper side connecting the highs is sloping downwards. A breakout of the triangle has minimum measuring implications - equal to the height of the pattern.
Category: Technical Analysis