Triangles Pattern

Triangle patterns are very commonly used by traders. It is considered as a continuation pattern i.e.; it occurs when the trend continues in its existing direction. There are three kinds of triangle patterns; Ascending, descending and symmetrical.

Ascending Triangle

Ascending triangles are mostly seen in an uptrend indicating bullish sentiments of the market. These are formed by a rising support line and a resistance line meeting at an intersection thus, forming a triangle. As soon as the price breaks out of the upper resistance line a trader should enter the market because this depicts bullish sentiments as the security continues to make higher lows and higher highs.

Descending Triangle

Descending triangles are mostly seen in a down trend indicating bearish sentiments of the market. These are formed by a support line (base of the triangle) and a declining resistance line meeting at an intersection thus, forming a triangle. As soon as the price breaks out of the lower support line a trader should exit the market because this depicts bearish sentiments as the security continues to make lower lows and lower highs.

Symmetrical Triangle

It is a neutral pattern and it indicates the continuation of the existing trend. It does not lean in any direction but it still helps a trader predict the direction of trend and helps one identify breakouts and figure out entry and exit points. This pattern is mostly seen in an uptrend or a downtrend market. One should only take entry after the confirmation of breakout.