Smashed Triangle Pattern Means Dollar Rally Still On, BTIG Says
- Chart shows greenback index has a 12-year high in sight
- Breakouts tend to be 'pretty explosive,' BTIG's Stockton says
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The dollar is hurtling toward a 12-year high, according to global brokerage BTIG LLC.
That’s because Intercontinental Exchange Inc.’s U.S. Dollar Index breached a triangle formation last week, which occurs on a candlestick chart when intraday price highs decline and lows climb, creating shrinking price ranges that precede a rally or selloff. The triangle is a chart formation used in technical analysis, or the study of historical trading patterns to forecast changes in an asset such as a commodity or currency.