The intraday price action of the DIA recently formed two back-to-back ascending triangles, which resolved nicely according to classical technical analysis. Let’s look at them:

The first triangle occurred after Wednesday’s overnight gap as price consolidated into a coil, with upper resistance coming from the declining 20 period moving average, but lower support steadily rising within the context of a developing momentum divergence.

Whatever force kept prices at the $122.80 level soon gave way and price ejected upwards, completing its measuring rule price projection target of the distance from the lower to upper consolidation trendline (purple arrow).

Price actually continued a bit higher, and then consolidated after the lunch hour to form the day’s second ascending triangle formation.

Again, the eventual resolution of the pattern achieved its measuring rule price projection target (purple arrow) and found immediate resistance at this level.

I could have drawn a third triangle throughout the 3:00 hour, with the resolution being this morning’s overnight gap, but it would have been a symmetrical triangle.

It’s often very rare to have two triangles occur in a sequence like this, and it serves for a great educational lesson.