This is part of my study of the "Triangle" in day trading. There are many types and sub-types of Triangles. I may classify them differently to meet my own observations and methods, but the unifying theme here is that I can draw a triangle around them with my chart software.
I call this one the "Drill Wedge" , it is a very bullish pattern that I think is great for taking long positions. The Drill Wedge typically happens in the mornings during the first 90 minutes. This pattern can be also be formed by the entire market. If the S&Ps start forming this pattern below resistance then praise the lord, because its payday.
The Drill Wedge Defined:
1.) It is always preceded by vertical green bars on strong volume. There is no sloshing about here, price shoots straight up before beginning its wedge.
2.) The tight wedge forms directly below resistance. This is why I use the term Drill here. The wedge coils up like a spring, and then drills through the resistance.
3.) The wedge is symmetrical and tight.
4.) There is reduced volume as it forms its tight tip.
5.) It breaks upwards on massive volume.
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