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2005issue C071-4

Reverse trendlines as a geometry lab for convergence and expanding triangles

This case study teaches chart-pattern students to treat reverse-drawn trendlines as a geometry lab. Overlapping slopes, an expanding-triangle frame, and a double-top or double-bottom test are asked to collapse into one location-and-target hypothesis that later price can confirm or kill.

  • A reverse-trendline is drawn along successive highs during an advance or successive lows during a decline, opposite conventional support-to-support or supply-to-supply construction.
  • Later reverse lines are chosen with steeper ascent so two or more extensions meet at a line-convergence to the right of current price, treated as a candidate rally target.
  • Reverse lines from rallies and declines form an expanding triangle that frames later swings, while a double-top-bottom test shows whether a contention point is failing or still unresolved.
  • In an advance, a three-wave-countertrend sites a reverse line on the middle rally; the second downthrust is treated as complete only if it stays shorter than the first and pauses near earlier reverse lines.
Entries in this reading3 entries

Draw reverse trendlines first

Reverse trendlines are drawn along successive highs during advances and along successive lows during declines. That construction is opposite conventional support-to-support or supply-to-supply practice. In the historical workflow a reverse-trendline is then extended forward rather than left as a local edge.

Editorial reading: treat the reverse-trendline as the first object in a geometry lab. Draw it on the side of the swing that is already in motion, then keep the line available for a later meeting with a steeper partner.

Let steeper lines meet ahead of price

Later reverse trendlines are chosen with steeper ascent than earlier ones so that two or more extensions meet at one point placed to the right of current price. That line-convergence is treated as a candidate rally target.

Editorial reading: the meeting point is a hypothesis about location, not a completed event. Later price is what confirms or kills it.

Frame later swings with an expanding triangle

Reverse lines from declining phases, added to those from rallies, produce an expanding triangle used to frame subsequent market swings.

Editorial reading: the triangle-pattern is the frame for later swings. It becomes part of the lab only when a boundary shares a location with the line-convergence target.

Test short-term convergence on a longer-horizon chart

A longer-horizon chart is used to test whether short-term reverse-line convergence sits between two prominent resistance highs, with the more recent high lower than the earlier one.

Editorial reading: those two highs are a double-top-bottom test. The short-term line-convergence is asked to sit inside that two-peak contention so one shared location can be confirmed or killed.

Mark a three-wave-countertrend in an advance

In an advancing market a three-wave-countertrend is marked, a reverse line is drawn from the middle-rally highs, and that line is extended forward as the target after the second downthrust. The second downthrust is treated as more likely complete when price pauses near additional reverse lines from earlier lows and remains a shorter thrust than the first downswing. If the second downthrust extends beyond the first, the method treats the decline as still underway and withholds entry on that criterion.

Read a 15-minute euro expansion and a double high

On a 15-minute euro chart ahead of a scheduled report, two outer reverse lines framed an expansion whose inner reverse lines clustered at both extremes. Coincidence of more lines was described as strengthening the target reading. After a first impulse low and a single test of the session thrust high, read as a double high, a later break below the intervening pivot was treated as making a move toward the lower expanding-triangle boundary more likely. A later return to the double-high test level was described as leaving that contention unresolved and warning that an upside break could still develop.

Editorial reading: the double high is a double-top-bottom signal that the contention point may be failing or may still be unresolved. The break below the intervening pivot favored the lower triangle boundary, but the later return left the same location open to an upside break.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
22 of 33 in the Triangle pattern track
20051-4 pp.Next on Triangle patternVolume shapes versus triangle and double-pattern breakoutsA five-way volume-shape catalog was applied to 38,500 completed chart patterns and compared with post-breakout ultimate-move averages.
All readings on this track · 33 readings
  1. 1986Gold as a double zigzag before a contracting B-wave triangle
  2. 1990Scoring competing wave counts after a crash
  3. 1992Pre-trade checklist for trendline and triangle signals
  4. 1995Chart patterns as tactics, not strategy
  5. 1996Constructing Elliott wave counts with triangles and Fibonacci
  6. 1996A price-channel case study with a pending triangle signal and a planned stop-loss
  7. 1996Expanding triangle as a dual-label fourth-wave reversal worksheet
  8. 1997Rising wedge construction, breakout, and volume
  9. 1997Confirm structure and conditions before naming a Triangle pattern
  10. 1999Drawing the Triangle pattern before Breakout confirmation and the Stop-loss order
  11. 2000Four-phase market cycle triangle breakouts
  12. 2000Continuation triangles as a three-lock experiment
  13. 2001Folding rule: stacking three trendlines on an accelerating swing
  14. 2003A scored symmetrical triangle on a utility stock
  15. 2003Constructing wedges versus flat-boundary triangles
  16. 2004Testing triangle breakouts against volume filters
  17. 2004Mute triangles, histogram force, and trader optimization
  18. 2004Constructing falsifiable reversal and continuation patterns
  19. 2004Construct a corrective rising wedge before treating it as a short
  20. 2004A continuation triangle with Fibonacci targets and an apex stop
  21. 2005Pre-breakout filters for classic chart patterns
  22. 2005Reverse trendlines as a geometry lab for convergence and expanding triangles
  23. 2005Volume shapes versus triangle and double-pattern breakouts
  24. 2005A nested-pattern checklist on the 2005 euro
  25. 2005Volume test for a descending triangle breakout
  26. 2010Constructing triangle, broadening, and head and shoulders patterns
  27. 2011Treat a numeric pattern rank as a shortlist
  28. 2011Evaluating the head-and-shoulders as a falsifiable reversal
  29. 2013Auditing chart patterns by the first post-breakout swing
  30. 2014A three-gate entry for a triangle pullback
  31. 2014Golden triangle: a 50-day pause that still needs both gates
  32. 2014The triangle qualifier came after the rating pre-screen and the fifty-day bounce
  33. 2018Aligning daily, weekly, and monthly triangles with trendlines and Fibonacci retracements
All 55 readings tagged Triangle pattern
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