Triangles often precede price volatility.
Bearish Squeeze Alert
- Bearish reversal pattern
- Appears in an uptrend
- 1st candle is a tall green candle in the direction of the trend
- 2nd and 3rd candles form successive inside candles
- 2nd and 3rd candles make both higher lows and lower highs than the previous candle
- Size of the 2nd cand 3rd bodies do not matter
- 2nd and 3rd candles can be either color
- Wait for a confirmation on the breakout candle in the form of a gap down at the open or a lower close on the next candle
Bullish Squeeze Alert
- Bullish reversal pattern
- Appears in a downtrend
- 1st candle is a tall red candle in the direction of the trend
- 2nd and 3dr candles form successive inside candles
- 2nd and 3rd candles make both higher lows and lower highs than the previous candle
- Size of the 2nd and 3rd bodies do not matter
- 2nd and 3rd candles can be either color
- Wait for a confirmation on the breakout candle in the form of a gap up at the open or a higher close on the next candle
Below is a chart example of a Bullish Squeeze Alert pattern.
