Question of the Week: 1/28/2009
If you are sure a contracting triangle formed, how can you be sure of the direction of the "thrust"?
Determining the direction a market will "thrust" after a contracting Triangle is pretty easy. First, wave-A in such a pattern will always be the largest and most violent wave. Next, the "thrust" out of a contracting Triangle will always be in the opposite direction of that first, violent A-wave.
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