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Chart formations · 8 min read

Triangle breakouts: one boundary is not the whole market.

Freeze converging swing boundaries, then distinguish a local event from a change in the wider range.

One question to answerDoes a local breakout prove that the older high was broken?

The lesson on YouTube

Watch. Then work through the idea.

Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.

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What is actually happening?

A triangle describes selected narrowing swings. A symmetrical version combines lower selected highs and higher selected lows. Geometry does not reveal order volume, participants’ plans or which side will break next.

Keep the boundary clear. Narrowing price swings do not measure reduced orders or reveal a hidden accumulation process.

Guided example · Selected swing prices and later closes · synthetic schematic

Local break or wider breakout?

Reveal the selected swing sequence, then compare the same close with two different references.

Restart & example assumptions

Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.

For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.

Make the conditions explicit.

01 / CONTEXT

Specify swing selection, tolerance and the prior wider range. Keep the selected boundaries as they existed before the candidate event.

02 / TRIGGER

For a close-based exercise, evaluate a completed close beyond the frozen local upper boundary. Independently compare it with the older high.

03 / CANCEL OR INVALIDATE

A later close back inside is contrary evidence for sustained local progress. Do not redraw the boundary through the failed candle.

The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.

What can this cost?

The wider obstacle can leave little room for a pre-defined exit. A projected width is a measurement, not a guaranteed destination.

Calculate the size from your assumptions

How the idea can fail.

The local close-through can be followed by a return to 104 inside the selected boundaries. Count that outcome alongside apparent continuations.

Practical habit

Keep two labels: “local boundary” and “wider obstacle.” Do not replace both with the word breakout.

Go one level deeper

Save the boundary coordinates at decision time. Reconstructing them from a completed chart can incorporate future information.

Check your understanding

A close at 107 is above local reference 106 but below the old high 110. What occurred?

Choose one answer

Further reading & boundaries

These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.

Editorial revision: 13 October 2026 · Synthetic data · Educational use

Keep buildingFlags: pause or reversal?