Yes, I understand about proper syntax, I just wanted to write the logic down. Also, I have been to that link before and that is where I got the information. However, the information in that link does not specify conditions for breakout to up and down separately, just a generic description which seemed to me it is only for breakouts to the upside.
This is why I need confirmation for the logic, both up and down breakout triangles.
What was the definition Linda gave during the last webinar?
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No, this pattern was discussed by Linda R. during yesterday's futures.io (formerly BMT) webinar. I do not know the origin of this 3-Bar Triangle pattern.
But my impression was that something like a double inside bar would make a triangle. However, the above definition would not necessarily produce a triangle some times. That is why I was asking for clarification.
If you have an inside bar, it is always a three bar triangle pattern. But the reverse is not true, as there are three bar triangle patterns that are not inside bars.
I have given the logic above. I think there is one element missing. The pattern is stands for a consolidation of three days which may precede a breakout. I would therefore ask for the third day to have a lower range than the preceding day.
If you look at the patterns that have been suggested by Toby Crabel, they are slightly different:
NR or narrow range day: current range must be smaller than the range of the previous day
NR7 or narrow range 7 days: current range must be smaller than the range of each of the 6 preceding days
WS or wide spread day: current range must be larger than the range of the previous day
WS4 or wide spread 4 day: current range must be larger than the range of each of the 6 preceding days
ID or inside day: current high must be smaller than the high or the previous day, current low must be larger than the low of the previous day
IDNR4 or inside narrow range 4 day: a day which is an inside day and a narrow range 4 day
2BNR or two bar narrow range day: The two-bar range of the last day must be smaller than the two bar range of the prior day
The focus of Toby Crabel is more on declining volatility. The three bar triangle pattern by LBR does not specify whether the last bar should have a smaller range than the two preceding bars. It is even possible to build a three bar triangle pattern, where the last bar has a higher range than the two preceding bars.
However, in practice the patterns are often similar. If I look at the two examples shown on the chart in the webinar, then
-> the first triangle is also an IDNR7 (inside day and narrow range 7 day) pattern
-> the second triangle is a NR3 pattern
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