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2014issue C128-9

The triangle qualifier came after the rating pre-screen and the fifty-day bounce

The archive records a reader who replicated a published triangle setup and asked whether the pattern was scanned or reviewed by eye. The practitioner applied the triangle only after a rating pre-screen and a visible fifty-day bounce, with volume as a later check.

  • The triangle qualifier was applied only after names had already met a combined fundamental and technical rating pre-screen.
  • Remaining names were then qualified by visually locating a fifty-day bounce.
  • Volume verification came after that bounce and was not the opening filter.
  • The practitioner treated triangle work as visual review of an already filtered list, not as a first-pass scan for the pattern.
Entries in this reading3 entries
Current trackTriangle pattern55 readingsVolume-price analysis129 readingsMoving average449 readings

How the question arose

A reader described replicating a published triangle setup in charting software and then continuing to watch the method after missing the first entry.

That reader asked whether the triangle condition was located with a dedicated scan or by reviewing a shorter watchlist visually.

The order that was described

The practitioner said the triangle was applied only after names had already met a combined fundamental and technical rating screen. That rating pre-screen is an earlier fundamental-and-technical filter that shrinks the candidate list before any pattern work begins.

Remaining names were then qualified by visually locating bounces off a 50-day moving average. The fifty-day bounce is a visible reaction off the 50-day moving average used to qualify remaining names.

Volume was described as a further verification step after the moving-average bounce, not as the opening filter. Volume verification is a later check that participation agrees with the price structure before the setup is treated as complete.

The practitioner characterized the triangle work as visual review of an already filtered list rather than a first-pass scan for the pattern itself. The triangle qualifier is a contracting price structure used as a late visual condition, not as the first scan.

Editorial reading

The following paragraph is a TradersWeek editorial reading and is not attributed to the archive. The case is a lesson in entry-rule order, not in isolated pattern recognition. A triangle is only a complete, falsifiable setup after a prior rating screen, a fifty-day average bounce, and a separate volume check.

Payout on a winning bet versus a losing bet

A trader should see that the $3,500 profit on the winning $5,000 stake does not offset the $5,000 loss on the losing stake, so the combined $10,000 book ends $1,500 down, a minus 15 percent expectancy. The bars are the profit column of Figure 1 in Norman Brown’s letter, not a redrawn magazine layout.
A trader should see that the $3,500 profit on the winning $5,000 stake does not offset the $5,000 loss on the losing stake, so the combined $10,000 book ends $1,500 down, a minus 15 percent expectancy. The bars are the profit column of Figure 1 in Norman Brown’s letter, not a redrawn magazine layout.Hypothetical two-bet book from Letters to S&C, December 2014 · Single paired win-and-loss illustration, not a market sample · 2014-12-01T00:00:00.000Z to 2014-12-31T00:00:00.000Z

Brown’s letter applies Gail Mercer’s November 2014 values B = 0.5 and R = 0.7, which give E = 0.5 × 1.7 − 1 = −0.15, matching the table total of −$1,500 on $10,000.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
32 of 33 in the Triangle pattern track
201828-29 pp.Next on Triangle patternAligning daily, weekly, and monthly triangles with trendlines and Fibonacci retracementsDaily, weekly, and monthly directional triangles can be plotted together on one daily chart, so higher-interval trend changes are visible without opening a separate chart for each interval.
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
By fieldEntry and exit rules206 readingsBy year201489 readings
All 55 readings tagged Triangle pattern
Also on Triangle pattern5 readings
2000Four-phase market cycle triangle breakouts2014Golden triangle: a 50-day pause that still needs both gates1997Rising wedge construction, breakout, and volume2002Evaluating throwbacks and pullbacks after triangle breakouts2003Building flags, pennants, and triangles as continuation pauses