Education & Information
Buy Signals
Bullish Triangle
The bullish triangle pattern consists of a minimum of 5 columns, but it could have more. The pattern begins with lower columns of Xs and higher columns of Os indicating a balance in the supply and demand relationship. The bullish triangle pattern is broken when a column of Xs exceeds a previous column of Xs indicating the balance is broken and a new trend is beginning in the stock. Usually, a triangle pattern will begin after a stock has already begun an advance. The triangle indicates supply is meeting demand on a short-term basis. The break of the triangle pattern means the short-term supply is exhausted and demand is still strong. A new “leg” of the advance is likely to result.