This pattern suggests consolidation or price squeezing, where price is contracting within a tighter range. The market is "coiling" up for a potential breakout in either direction, typically leading to a sharp movement once it breaks out of the triangle.

Trading the Breakout:

• Entry: Traders look for a breakout above the high of the pattern or below the low of the pattern, indicating the direction of the next move.
• Stop-loss: Placing a stop-loss outside the opposite side of the triangle (either above the high or below the low) helps manage risk.
• Targets: Some traders aim for a price move equal to the size of the triangle (the distance between the high and low of the first bar)