Since 2011, gold has been in a downtrend from the 19207 all-time high to the 10723 low made earlier this year. During this four-year trend, gold has had a series of consolidations, in the form of triangle formations, followed by downside breakouts.
Triangle formations are formed when ranges shrink smaller and smaller until they reach an apex. When a triangle formation occurs within a trending market, the breakout usually happens in the direction of the trend. This pattern had happened three times during gold's downtrend, and a fourth triangle is currently forming. Significant moves usually follow breakouts from triangle formations.