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FOREX TRADING COURSE FOR BEGINNERS
SPRINGING FROM COILS
The formation gets its name from the way prices contract and suddenly spring out of this
pattern like a tight coil spring. One caution about this formation: It's best if prices break out of
the formation while halfway to three-quarters of the way to the triangle's apex. If prices reach
the apex, a strong move in either direction is less likely.
Ascending and descending triangles are similar to coils but are much better at predicting the
direction prices will take. Prices should break to the flat side of the triangle.
Price objectives from ascending and descending triangles can be obtained two ways. The easiest
is to add the length of the left side of the triangle to the triangle's flat side. Another method of
projecting price is to draw a line parallel to the sloping line from the beginning of the triangle.
Expect prices to rise or fall out of the triangle formation until they reach this parallel line.
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