Two period close confirms breakdown!
FIGURE 4.9 Single-Close Trap Used with permission of GenesisFT.com.
the direction of the breakout. We want to watch for what I call the single-close trap, which is what occurs when we see a false breakout on one side for a single period and then an immediate reversal. What you want to focus in on is a sustained price move as prices close at least twice outside the trend lines.
Here is how the measuring technique can help you: Take the widest distance between point A and point B, and then extend that down from the break at the apex of the triangle. That measurement will give you your initial price objective.
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