By anchoring the triangle’s resistance line through 4 distinct highs and the support line through 2 unviolated major lows, we establish a structurally reliable formation. This repeated validation lends statistical weight to both boundaries.
In this context, the resistance zone gains significance as a high-probability density region — a zone where price has historically reversed with consistency. The longer price remains confined within this converging structure, the more meaningful its breakout or rejection becomes, due to the underlying compression of nested cycles and volatility.
This reinforces the view that the triangle, what is perceived as geometric, is in fact probabilistic corridor governing the limits of price behavior until structural tension resolves.
In classical fractal systems, self-similarity means similar patterns recur across scales. Scaling laws define how measurements (e.g., time between peaks, range of swings) relate across levels.
However, within a triangle (even ascending one in this case), amplitude decays as each leg becomes shorter — violating the assumption of consistent proportionality across scales. Time intervals tighten, disrupting the expected temporal rhythm. Energy dissipates into a narrower price structure — akin to an entropic bottleneck in a dynamic system.
This reflects Mandelbrot’s insight:
These distortions suggest that fractal dimension becomes non-stationary, adapting locally as price compresses. If we take a look at fractal shapes we can see how patterns of same classification whether continuation or reversal can be distorted over big intervals of cycles.
The legitimate concern at this point is to work out what will happen structure when price supposedly breaks out from any side. Since triangular formation is still unviolated, I'll use those angles to integrate fibonacci channels that would mark ends of those breakouts.
Current price is circled violet and yellow due to uncertainty. If it's just a pullback (reaction to drop from ATH) then we assume bearish continuation.However, there remains a valid chance of the structure evolving into a bullish impulse. Due to this ambiguity, I’ll be watching the next 2–3 daily candles to determine whether the fractal hierarchy confirms a directional resolution.
In this context, the resistance zone gains significance as a high-probability density region — a zone where price has historically reversed with consistency. The longer price remains confined within this converging structure, the more meaningful its breakout or rejection becomes, due to the underlying compression of nested cycles and volatility.
This reinforces the view that the triangle, what is perceived as geometric, is in fact probabilistic corridor governing the limits of price behavior until structural tension resolves.
In classical fractal systems, self-similarity means similar patterns recur across scales. Scaling laws define how measurements (e.g., time between peaks, range of swings) relate across levels.
However, within a triangle (even ascending one in this case), amplitude decays as each leg becomes shorter — violating the assumption of consistent proportionality across scales. Time intervals tighten, disrupting the expected temporal rhythm. Energy dissipates into a narrower price structure — akin to an entropic bottleneck in a dynamic system.
This reflects Mandelbrot’s insight:
“Markets alternate between phases of tight control and sudden chaos.”
These distortions suggest that fractal dimension becomes non-stationary, adapting locally as price compresses. If we take a look at fractal shapes we can see how patterns of same classification whether continuation or reversal can be distorted over big intervals of cycles.
The legitimate concern at this point is to work out what will happen structure when price supposedly breaks out from any side. Since triangular formation is still unviolated, I'll use those angles to integrate fibonacci channels that would mark ends of those breakouts.
Current price is circled violet and yellow due to uncertainty. If it's just a pullback (reaction to drop from ATH) then we assume bearish continuation.However, there remains a valid chance of the structure evolving into a bullish impulse. Due to this ambiguity, I’ll be watching the next 2–3 daily candles to determine whether the fractal hierarchy confirms a directional resolution.
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ᴀʟʟ ᴄᴏɴᴛᴇɴᴛ ᴘʀᴏᴠɪᴅᴇᴅ ʙʏ ꜰʀᴀᴄᴛʟᴀʙ ɪꜱ ɪɴᴛᴇɴᴅᴇᴅ ꜰᴏʀ ɪɴꜰᴏʀᴍᴀᴛɪᴏɴᴀʟ ᴀɴᴅ ᴇᴅᴜᴄᴀᴛɪᴏɴᴀʟ ᴘᴜʀᴘᴏꜱᴇꜱ ᴏɴʟʏ.
ᴘᴀꜱᴛ ᴘᴇʀꜰᴏʀᴍᴀɴᴄᴇ ɪꜱ ɴᴏᴛ ɪɴᴅɪᴄᴀᴛɪᴠᴇ ᴏꜰ ꜰᴜᴛᴜʀᴇ ʀᴇꜱᴜʟᴛꜱ.
ᴀʟʟ ᴄᴏɴᴛᴇɴᴛ ᴘʀᴏᴠɪᴅᴇᴅ ʙʏ ꜰʀᴀᴄᴛʟᴀʙ ɪꜱ ɪɴᴛᴇɴᴅᴇᴅ ꜰᴏʀ ɪɴꜰᴏʀᴍᴀᴛɪᴏɴᴀʟ ᴀɴᴅ ᴇᴅᴜᴄᴀᴛɪᴏɴᴀʟ ᴘᴜʀᴘᴏꜱᴇꜱ ᴏɴʟʏ.
ᴘᴀꜱᴛ ᴘᴇʀꜰᴏʀᴍᴀɴᴄᴇ ɪꜱ ɴᴏᴛ ɪɴᴅɪᴄᴀᴛɪᴠᴇ ᴏꜰ ꜰᴜᴛᴜʀᴇ ʀᴇꜱᴜʟᴛꜱ.
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ᴀʟʟ ᴄᴏɴᴛᴇɴᴛ ᴘʀᴏᴠɪᴅᴇᴅ ʙʏ ꜰʀᴀᴄᴛʟᴀʙ ɪꜱ ɪɴᴛᴇɴᴅᴇᴅ ꜰᴏʀ ɪɴꜰᴏʀᴍᴀᴛɪᴏɴᴀʟ ᴀɴᴅ ᴇᴅᴜᴄᴀᴛɪᴏɴᴀʟ ᴘᴜʀᴘᴏꜱᴇꜱ ᴏɴʟʏ.
ᴘᴀꜱᴛ ᴘᴇʀꜰᴏʀᴍᴀɴᴄᴇ ɪꜱ ɴᴏᴛ ɪɴᴅɪᴄᴀᴛɪᴠᴇ ᴏꜰ ꜰᴜᴛᴜʀᴇ ʀᴇꜱᴜʟᴛꜱ.
ᴀʟʟ ᴄᴏɴᴛᴇɴᴛ ᴘʀᴏᴠɪᴅᴇᴅ ʙʏ ꜰʀᴀᴄᴛʟᴀʙ ɪꜱ ɪɴᴛᴇɴᴅᴇᴅ ꜰᴏʀ ɪɴꜰᴏʀᴍᴀᴛɪᴏɴᴀʟ ᴀɴᴅ ᴇᴅᴜᴄᴀᴛɪᴏɴᴀʟ ᴘᴜʀᴘᴏꜱᴇꜱ ᴏɴʟʏ.
ᴘᴀꜱᴛ ᴘᴇʀꜰᴏʀᴍᴀɴᴄᴇ ɪꜱ ɴᴏᴛ ɪɴᴅɪᴄᴀᴛɪᴠᴇ ᴏꜰ ꜰᴜᴛᴜʀᴇ ʀᴇꜱᴜʟᴛꜱ.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.