Interpretation of the triangular convergence chart

 

 

 

◆ Trigonometric convergence = big fluctuation

 

It is the logic that the point of triangular convergence, or that there is a big rise or a big drop just before convergence.

 

The triangle should bounce at least 2 times from support and resistance. The more bounces, the more reliable the chart. At this time, it is interpreted that the more the triangle converges, the greater the fluctuation range when the trading volume decreases.

 

 

Aggressive traders make profit or stop loss a little earlier in the completion of triangular convergence, but conservative traders have a tendency to sell after confirming a perfect breakout of the trend. There are various patterns of triangular convergence, but the above three patterns are common and have high reliability.

 

 

 

 

◆ Triangular convergence case analysis

 

When you check the triangular convergence chart, it becomes 240 minutes. When macroscopically confirming not only triangular convergence but also most auxiliary indicators such as MACD, moving average, etc., it is recommended to view the trend at the 240-minute period and trade by entering the 30-minute and 3-minute periods during the next trade.

 

If you look at the chart above, it moves while converging into a triangle. After perfect convergence, you can see that the stock price has risen. If you predict the direction of the stock price using other indicators at the time of convergence or at the point of convergence, you will have higher reliability.

 

 

cf. Ascending, Descending Triangle Pattern [Link]