![]() Often, traders will assume that symmetrical triangles are continuation patterns, but they can reverse the trend, especially when the triangle is larger, because that indicates a more significant battle between buyers and sellers. Like ascending and descending triangles, symmetrical triangles can be bullish or bearish depending on the market conditions when it appears. For example, does the descending triangle appear after a bearish or bullish reversal pattern, such as a head and shoulders or inverse head and shoulders? The descending triangle could have a bullish breakout if the bigger picture or preceding price action is more bullish.Ī symmetrical triangle has a lowering resistance level and a rising support level, both pushing against each other to create a narrowing range. Pay attention to the price context when the triangle appears to help predict how it may break out. Remember, a triangle is a breakout pattern, and breakouts can happen in either direction. Yet with a descending triangle, the price can break out in either direction-either to the upside or to the downside. The lower highs give the sense that the price will break through the support and begin a new bearish move. It is easy to assume a descending triangle should be bearish-it has lower highs, like an uptrend. For example, does the ascending triangle appear during a trend? Is the triangle small, indicating a pause rather than a larger reversal pattern? Then the ascending triangle will probably continue the trend, whether it is an uptrend or downtrend. Pay attention to the price context when this triangle appears, to help predict how it may break out. Yet with an ascending triangle, the price can break out in either direction-either to the upside or to the downside. The higher lows give the sense that the price will break through the resistance and begin a new bullish move. It is easy to assume an ascending triangle should be bullish-it has higher lows, like an uptrend. Let’s look at each type of pattern in more detail.Īn ascending triangle has a horizontal resistance level with a rising support level. I will explore this in more detail in the article.Ī wedge is a type of chart pattern like triangles. ![]() ![]() Most traders assume ascending triangles are bearish and descending triangles are bearish-but the price can break out in either direction from ascending or descending triangles. There are three main types of triangle trading patterns:Īll three types of triangles can be bearish or bullish.
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