The depth of a formation also determines its significance. The breeching of a wide trading range has far greater psychological significance than that of a narrow one.

At market tops, the process is reversed, as those who were accumulating at or near the bottom sell to less sophisticated market participants, who become more and more attracted as prices rise and the underlying fundamental conditions improve. Where a substantial amount of distribution develops, this is usually followed by a protracted period of price erosion or base building.

The time taken to complete a formation is important because of the amount of an asset changing hands, and also because a movement in price beyond the boundaries of a pattern means that the balance between buyers and sellers has altered. When the price action has been in a stalemate for a long time and investors have become used to buying at one price and selling at the other, a move beyond either limit represents a' fundamental change, which has great psychological significance.