Triangle Chart Patterns
Symmetrical
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle, leaving your unfilled order as your stop loss.
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Ascending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Ascending Triangle should be sloping from lower to higher and from left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle, leaving your unfilled order as your stop loss. Ascending triangles, with a prior downtrend, are anticipated to break down and out, rather than up and out.
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Descending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in a Descending Triangle should be sloping from higher to lower and left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle, leaving your unfilled order as your stop loss. Descending triangles, with a prior uptrend, are anticipated to break up and out, rather than down and out.
