Buying breakout of orange .
The is a that begins wide at the top and contracts as prices move lower.
In contrast to symmetrical triangles, which have no definitive slope and no bias, falling definitely slope down and have a bias. However, this bias cannot be realized until a resistance breakout.
confirmation of the pattern does not come until the resistance line is broken in convincing fashion. It is sometimes prudent to wait for a break above the previous reaction high for further confirmation. Once resistance is broken, there can sometimes be a correction to test the newfound .
While is not particularly important on rising , it is an essential ingredient to confirm a breakout. Without an expansion of , the breakout will lack conviction and be vulnerable to failure.