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Triangles


There are 3 types of triangles:

• Symmetrical triangle

• Ascending Triangle

• Descending triangle

 

These are all continuation patterns so are best used in the direction of the trend.

 

Ascending Triangle


This triangle has a flat trend line on the top and a rising trend line from below.

Ascending triangles are bullish and implies a break higher. This should breakout in the direction of the previous trend.

Volume should be higher on the breakout and once a breakout occurs then that level where it broke out from will now be support.

 


Please click on chart below for larger image

 

Assending-triangle

 

   

Targets


For the target use the widest point of the triangle as a measuring tool. If for example at the widest point it was 50 pips long then the target is going to be 50 pips from the breakout point.

Note: Triangles can take from 1 month to 3 months to form and any smaller than 2 weeks could be a pennant or flag formation.