Oscillators and Momentum Indicators
Important Chart Patterns
- Chart Patterns
- Learn to Trade Double Bottoms and Double Tops
- How to Trade the Head and Shoulders Pattern
- How to Trade Wedge Chart Patterns
- How to Use Rectangle Chart Patterns to Trade Breakouts
- How to Trade Bearish and Bullish Pennants
- How to Trade Triangle Chart Patterns
- Know the 3 Main Groups of Chart Patterns
- Forex Chart Patterns Cheat Sheet
How to Trade Triangle Chart Patterns
Triangles are the trading chart patterns which are quite often used by FX traders.
There are three kinds of triangle chart patterns which are ascending, descending
and symmetrical. Let’s discuss each one of this triangle one by one.
Symmetrical Triangle – It is a chart formation in which price high and price low
slopes meet together at a point, which gives a representation of the triangle.
Traders conclude from this triangle pattern that the market is neither getting
bearish nor bullish as no one is pushing it. It is a tie condition, and it is
unpredictable to know when the market will break out.
Ascending Triangle – This is a pattern which gets drawn when there is a high lows
slope along with a resistance level. This pattern tells that buyers cannot go further
a degree and there are significant price lows present at the trend. The conclusion
of this pattern is a different thing as it may take any direction out of being strongly
resistant or breaking up by buyers.
Descending Triangle – This triangle means that there is an array of lower highs
which draws the upper line of the chart. The lower edge of this triangle represents
the support level where the price cannot be a break. This triangle symbolizes that
sellers are dominating against the buyers and are earning gains. It is advised to
place your entry at the top of the triangle, aiming toward a target as high as the
trend height as it will yield high profits to you.