Triangles are technical analysis figures that most often occur on currency charts. They are formed on rapidly developing trends, and almost always serve as a continuation of the current trend. The following types of triangles are distinguished: 1. Ascending triangle: formed on an uptrend. In this case, the resistance line drawn through the price peaks runs horizontally, and the support line is located with a vertical slope. Those. The price highs are located on the same horizontal level, and the lows are gradually increasing. (“Bulls are pushing” the price up). 2. Descending triangle – a reverse triangle ascending. It is treated exactly the opposite. It is formed on a downtrend, drawn by a horizontal line drawn through the minima (resistance line), and an inclined line drawn through the price peaks. (“Bears” are pushing the price down). 3. Symmetrical triangle: drawn lines of support and resistance, symmetrically converging at equal angles. It can be formed both on the uptrend and downtrend. Displays the consolidation of forces in the market when the potential of sellers and buyers is about the same. The triangle must consist of at least five elements (highs and lows).

Interpretation of triangle signals: 1. The very appearance of a triangle on the corresponding trend is a reliable signal of the continuation of the current trend in the market. 2. The most important signal of the triangle is the breakdown. Breakdown usually occurs at one third of the distance from the top of the triangle. Older breakdowns are not reliable. factors of aging figure are included.

A. Breakdown in the direction of the previous trend is almost a 100% signal to buy (when the upward triangle breaks up), or to sell (if the downward triangle breaks down). The benchmark for profit taking is the height of the triangle applied to the breakdown point. B. Breakdown in the direction opposite to the direction of the previous trend may be a signal of the end or trend change. You should consider the option of reversing the position, or opening in the other direction. C. When a symmetric triangle is broken, the position is opened in the direction of the breakdown. Profit taking also – the height of the triangle attached to the breakdown point.

Triangles are classic figures of technical analysis of the markets, and reflect patterns that have been used successfully in trading for nearly forty years!

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