Triangle – 3 Column

A three-column triangle is a neutral pattern that indicates price convergence.

An inside column occurs when the length of a swing move is within the length of an earlier swing move.

A sequence of two inside columns forms a three-column triangle. This kind of pattern is not easily visible in other charting methods and it can prove very useful. It is expected to be followed by a strong trend and momentum.

A double top buy pattern after a three-column triangle is a bullish triangle breakout pattern. The double bottom sell pattern after a three-column triangle is a bearish triangle breakout pattern.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.