triangular shape

triangular shape, It means that the price does not move forward after a period of rapid changes, but moves up and down in a narrow range within a certain area, and then continues the previous trend when the time is ripe. Most of the time, the triangle form belongs to the relay form, which is mainly divided into three types: symmetrical triangle, ascending triangle and descending triangle.

symmetrical triangle

The upper and lower angles of a symmetrical triangle are similar or equal. If the upper edge is 30 ° to the horizontal, then the lower edge is also close to 30 ° to the horizontal. Symmetrical triangles indicate that the long and short sides are evenly matched, so the probability of becoming a trend continuation pattern is greater, and the chance of becoming a reversal pattern is about 1/4.

Trading Practice

operationally, if the original trend is up, then the breakout point becomes a buy point when the price breaks through the upper track of the triangle. If the triangle range is large, investors can also be in the range of high altitude much lower, take profit stop loss is easy to set up.

Rising Triangle

The upper side of the ascending triangle is relatively flat and the lower side slopes upward. Its flat top shows that the multiple parties have enough power to pull the price back to the same level each time, while the short side fails to suppress the price to the same level. In general, the rising triangle is a signal of rising prices, although there are exceptions, but the error ratio is less than 20%.

Trading Practice

at the operational level, the rising triangle can follow the trend when the price breaks through the upper track. The price rises by at least the vertical distance of the wide side of the triangle.

Descent Triangle

The lower side of the descending triangle is relatively flat and the upper side slopes downward. Its flat bottom shows that the short side is able to suppress the price to the same level every time, while the multiple sides fail to raise the price to the same level. In general, a downward breakout in price after a falling triangle is more likely, although there are exceptions, but the error ratio is less than 20%.

The deal is pragmatic

at the operational level, the falling triangle can follow the trend when the price breaks through the lower track. The price falls by at least the vertical distance of the wide side of the triangle.

Special reminder

effective breakouts occur in the first 2/3 of the triangle. If the breakthrough occurs in the last 1/3 of the triangle, it is best not to operate. If the price follows all the way to the apex of the triangle, the post-market trend may still be relatively flat.

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