# Entry Exit Strategies When Price Consolidates In Such A Pattern

As mentioned earlier in this chapter, contracting triangles are being formed out of five different waves, abcde, with wave a being the longest. In order to have an educated guess about the possible ending level of a contracting triangle what you need to do is to take a Fibonacci retracement tool and measure the length of wave a, the first leg of the triangle and then draw a horizontal like at the 50% retracement level. This line gives you the most likely level where the contracting triangle might end.

When a contracting triangle is a continuation pattern, meaning price will exit the triangle in the same direction it entered initially, the measured move given by such a pattern is the height of the first wave, wave a, projected above/below from the breaking point of the triangle. From my experience I will not insist on this measured move to be by the pip, but would go for something like 61.8%-75% of it as being a more conservative target. Anyways, the minimum objective after price breaks out of a contracting triangle as continuation pattern is 75% out of the length of wave a and this is called the thrust of the triangle. So there you go you have a range between the minimum objective given by the thrust and the measured move of the triangle. Given the fact that they come as a continuation patterns mostly on the 4th wave types of structure, they are tricky in the sense that sometimes the 5th wave is so small that not even the measured move is reached.

As a must when dealing with triangles is to understand the concept of elongated flats, because they are coming almost exclusively as being an entire leg of the triangle of a segment of a leg of a triangle.

This sub chapter will have six different recordings, part 1, 2, etc. showing you different examples on how to treat a contracting triangle and how to look for the thrust, relationship between legs of the triangle, and what to expect after such a pattern.