Welcome to Lead One pro

HELPING TRADERS SUCCEED “The human side of every person is the greatest enemy of the average investor or speculator.” ~ Jesse Livermore

Triangle Chart Pattern

Triangle Chart Pattern

A triangle is a technical chart pattern created by drawing trend lines along a converging price range. Variations of a triangle include ascending, descending and symmetrical triangles. Triangles are similar to wedges and pennants and can be powerful continuation or reversal patterns.

Ascending Triangle

Ascending Triangle Pattern, characterized by horizontal top and rising bottom. This is created when a bullish market pushes up against a resistance level.They are the pressure areas in a stock chart where the area of resistance tries to block a rising price. But the underlying bullishness of the market pushes the price slowly with swing ups and swing downs, which forms a pattern, which looks like a triangle. The top of the triangle is horizontal resistance trend line and the bottom is up sloping support trend line.It may be both reversal or continuation chart pattern. It is so named because the ascending support trend line predicts the rise in prices, hence the name ascending triangle.

Descending Triangle

Descending Triangle , characterized by horizontal bottom and down sloping top. This is created when a bearish market pushes price down against a support level. They are the pressure areas in a stock chart where the area of support tries to block a falling price. But the underlying bearishness of the market pushes the price slowly with swing downs and swing ups, which forms a pattern, which looks like a triangle. The bottom of the triangle is horizontal support trend line and the top is down sloping resistance trend line.It may be both reversal or continuation chart pattern. It is so named because the descending resistance trend line predicts the fall in prices, hence the name descending triangle.

Symmetrical Triangle

Symmetrical Triangle is a chart pattern, characterized by converging top and bottoms. This is created when there is indecision in the direction of the market.They are the pressure areas in a stock chart where the bulls wants to buy more. Where as the bears wants to sell more. This creates higher high swing bottoms and lower low swing tops, which forms a pattern, which looks like a triangle. The bottom of the triangle is an up sloping support trend line and the top is down sloping resistance trend line.It may be both reversal or continuation chart pattern. It is so named because there is symmetry in the support and resistance trend lines, which converge and meet on the right side, hence the name Symmetrical Triangle.

Avatar
Trading Monk

Comments are closed.
error: Content is protected !!