A A triangle is a chart pattern that forms when neither the bu... More is a chart pattern that forms when neither the buyers nor the sellers are able to push the What are value stocks? A value company is a company that app... More What are value stocks? A value company is a company that app... More in a particular direction.
The pattern forms when the What is price? The price is the measure of the value of good... More slowly converges and buying and selling happens at lower and higher prices, respectively. The resulting formation appears as a triangle pattern.
There are three different types of triangles:
The symmetrical triangle forms when price is consolidating horizontally. The balance in power between the buyers and sellers appears to be equal. At some point, the price will break through the pattern; however, the direction is unknown. It is always best to wait for the A breakout is where a price movement manages to overcome a... More to occur before In trading, "entering the market" refers to making a trade... More.
In this particular example, the price broke out to the downside (1).
An ascending triangle forms when the price is consolidating with a bias towards the upside. The buyers are gaining strength in comparison to the sellers because they are able to create higher lows. They put pressure on the horizontal What are "resistance" levels in trading? A resistance level ... More level.level and a breakout is likely to happen. However, the direction of the breakout can be unknown, because it is still uncertain whether buyers will manage to break through the
In the example below, buyers could not break through the resistance level and sellers came in to push the price down (1).
The descending triangle forms when the price is consolidating with a bias to the downside. Sellers are gaining strength in comparison to buyers, as they are able to make lower highs. They put pressure on the horizontallevel and a breakout is likely to happen. Again, the direction of the breakout is unknown.