Basic of ascending triangle, descending triangle, and symmetrical triangle

In technical analysis studies, triangles fall into the category of continuation patterns. There are three different types of triangles, each of which needs to be scrutinized. These formations are in no particular order, upward triangles, downward triangles, and symmetric triangles.

Main learning

In technical analysis, a triangle is a continuation pattern on a chart that forms a triangle.
Triangles are similar to wedges and pennants, with a continuation pattern if validated and a powerful inversion pattern if failed.
There are three variations of the triangle that can occur if the price action cuts out the retention pattern. That is, an upward, downward, symmetric triangle.

Triangle

Triangles are best described as horizontal trading patterns. At the beginning of its formation, the triangle is at its widest point. As the market leveled off and continued to trade, the trading range narrowed and the tip of the triangle was formed. In its simplest form, the triangle shows that both the buyer and the seller have lost interest in the problem. The supply curve is narrowed to meet demand.

Think of the bottom line of the triangle, or the trend line at the bottom, as the demand line that represents the support on the chart. At this point, the buyer in question outnumbers the seller and the price of the stock begins to rise. The supply line is the top line of the triangle and represents the overbought aspect of the market when investors start to make a profit.

Ascending triangle pattern

Often a bullish chart pattern, the uptrend uptrend pattern is not only easy to find, but also a slam dunk as an entrance or exit signal. It should be noted that for a triangle to be considered a continuation pattern, it must have a recognized tendency. In the image above, you can see that there is an uptrend and the demand line or downtrend line is drawn to reach the base of the upside lows. Two highlights have been formed on the top line. These highs do not have to reach the same price level, but they should be close to each other.

Buyers may not be able to break through the supply line at first, and they may lap it several times before hitting a new ground and a new high. Chartists look for increased trading volumes as the main sign that new highs are forming. It takes about 4 weeks for the upward triangular pattern to form, probably not more than 90 days.

How does the lung (buyer) know when to jump into the problem? Most analysts take a position as soon as the price action breaks through the top line of the triangle with increasing volume. This is when the stock price needs to rise by an amount equal to the widest part of the triangle.

Descending triangle pattern

Downward triangles are mainly recognized as a downtrend and are often seen as a bearish signal. As you can see in the image above, the downward triangle pattern is an upside-down image of the upward triangle pattern. The two lows in the chart above form a flat line at the bottom of the triangle. Again, this shouldn’t be exactly the same, only close in price action.

Developing a downward triangle takes as long as an upward triangle, and volume again plays an important role in the downward breakthrough. (Some analysts believe that increasing the amount is not so important, but believes it is the most important. We always refer to the strength or weakness of the amount as a “drink.” I consider it to be a “stirring straw”.)