Points to note:
1, this pattern is generally three highs and two lows, with higher highs and lower lows.
2. There is no way to predict the minimum decline, but the decline will be great;
3. It is also possible to make an upward breakthrough, especially when the three top prices are at the same level, the trend will continue and the increase will be considerable;
4, this form rarely appears at the bottom, because in a low market, it is unlikely that such an impulsive and irrational market will appear.
Convergence form, also known as triangle, belongs to arrangement form, which often appears on weekly charts and is divided into upper and lower convergence forms. Upper convergence (mostly at the bottom of the graph) is a signal that a big rise will happen; Downward convergence (mostly at the top of the graph) may lead to a sharp decline. The definition of upper convergence is: the upper neckline is smooth, the lower neckline is upturned, and the tip of the nose seems to look up; The definition of lower convergence is: the lower neckline is smooth, the upper neckline is below _, and the tip seems to be bowing.
Why is there a sharp rise and fall? This is the result of a contest between buyers and sellers in this area. The buyer's strength is slightly superior, and the seller keeps selling near the neckline, forming an upturned line below; Similarly, the seller is slightly better, and the buyer keeps selling near the neckline, so a downward line is formed above it.
If it is neither upward convergence nor downward convergence, then the market is either consolidating or not rising or falling. This form is also the easiest to lock, so be extra careful.