In triangle patterns, what is referred to as the apex or cradle?

In triangle patterns, the term "apex" or "cradle" refers to the point where the two trend lines converge. This is the point at which the price movement narrows down as the formation of the pattern progresses. Triangles are typically formed by connecting the series of higher lows and lower highs, and the apex represents the culmination of these converging trend lines.

At the apex, traders often anticipate a breakout in either direction, which can lead to significant price movement. Understanding this concept is critical because the apex is where market participants must make decisions based on the anticipated volatility that follows a breakout from the pattern. The convergence at this point signifies reduced volatility and the potential for a change in trend, making it a focal point in technical analysis.