Basically triangular pattern or triangle consists of three types of symmetrical triangle pattern (symmetrical triangle), triangular pattern uphill (ascending triangle) and a triangular pattern decreases (descending triangle). -pola Patterns are often encountered in practice. Here is an explanation of each of these patterns and their way of trading. Symmetrical triangle pattern (symmetrical triangle) Is a symmetrical triangle pattern formation in which the slope of the line (slope) of the high levels and the line slope from low levels to meet at a point so that the pattern resembled an equilateral or symmetrical triangle. At this formation seems the price moves to form high levels were lower (lower highs) and low levels are higher (higher lows).
In this case the buyer and seller consolidate where buyers buy at a higher price and the seller sells at a lower price. When the second line of the slope almost met the direction of price movement will soon breakout or penetrate one of the two lines of the slope. In this pattern we can not determine the direction of the breakout is sure however convinced breakout will occur, so they can take advantage by opening a buy position above the line slope and a high level of short positions below the line of the slope of a low level, ie with a pending order buy stop and sell stop.
In the example above breakout in the direction of the slope of the line so that the high level of our stop buy order executed. In this case the sell stop orders can be immediately canceled, can be manually or use the facilities OCO (One Cancels Other). Target level or take profit in pips is determined by height triangle (x). Triangle pattern uphill (ascending triangle) Uphill triangle pattern is a triangular formation that is composed of a strong resistance level and slope of the line from the low levels that meet at a point so that the pattern resembles a triangle. At this formation appears price levels form a higher low (higher lows) and moved closer to the resistance level.
In this situation persist seller at a particular selling price was buyer purchase at a higher price thus pushing prices closer to the selling price. When buyers purchase price almost equal to the selling price of the seller, the direction of price movement will soon breakout or penetrate one of the resistance level or low level slope line. In many cases the price can indeed break the resistance levels where buying sentiment is stronger than the selling sentiment that prices continue to rise and are maintained through the level of seller, especially if the state before the formation of this pattern is likely to move the price uptrend. In this case the rising triangle pattern shows the forwarding direction of the trend (trend continuation). But not infrequently the resistance level is too strong and the buyer can not get through. That situation could be caused by buying sentiment diminishing or increasing the number of sellers so the price is moving through the line slope and a low level of bearish move.
Just like a symmetrical triangle pattern, the pattern we also can not determine the direction of the breakout with certainty but believe the expected breakout, so they can take advantage by opening a buy stop position above the resistance level and the position of sell stop below the low level line slope. In the example above breakout in the direction of the line of slope lows and sell stop orders are executed. Just as before, the level of the target or take profit in pips is determined by height triangle (x). Triangle pattern decreases (descending triangle) This pattern is the opposite of the triangle uphill. A declining triangle triangle formation that consists of a strong support level and the slope of the line from the high levels that meet at a point so that the pattern resembles a triangle. At this price formation forming high levels were lower (lower highs) and move closer to the support level, which indicates that the lower selling prices while purchasing prices persist at some level.
When the seller selling price almost equal to the purchase price of the buyer, the direction of price movement will soon breakout or penetrate one of the support level or high level slope line. As well as triangular patterns uphill, in many cases the price can indeed break the support level where selling sentiment is stronger than buying sentiment, but it is not uncommon level of support is too strong and the buyer can not get through due to the selling sentiment diminishing or increasing the number of buyers so prices moving through the line slope high level and bullish.
Just as before, we open the position buy stop above the line slope and a high level position sell stop below the support level. In this example the breakout in the direction of the slope of the line so that the high level of buy stop orders are executed. Just as before, take profit level is determined by height triangle (x).
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