A "bordering triangle" pattern in trading refers to a technical analysis chart pattern where two trendlines, one above the price and one below the price, converge towards each other. This creates a triangle shape that "borders" the price action.
The upper trendline represents the resistance level and the lower trendline represents the support level. As the price moves closer to the apex of the triangle, it becomes more likely that a breakout will occur, either to the upside or downside.
Traders often use bordering triangles to help identify potential price breakouts and establish entry and exit points for their trades. Once a breakout occurs, traders may look for confirmation of the new trend direction and then adjust their trading strategies accordingly.
