GOLD - BULLISH MOVEHello Traders !
The Gold price formed a symmetrical triangle pattern.
The resistance line is broken !
So, I expect a bullish move🚀
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TARGET: 3414🎯
Symmetrical Triangle
Inverse H&S + Triangle = Gold’s Perfect Setup for a BreakoutAs I expected in my previous idea , Gold ( OANDA:XAUUSD ) started to rise after a correction and made another attack on the Resistance zone($3,280-$3,245) .
Gold is currently moving near the Resistance zone($3,280-$3,245) and Yearly Resistance (2) .
If we look at the Gold chart from a Classic Technical Analysis perspective, two Classic Patterns are clearly visible.
1- Inverse Head and Shoulders pattern , which is a good sign for a Resistance zone($3,280-$3,245) breakout.
2- Symmetrical Triangle Pattern is also a sign of a continuation of the recent bullish trend
In terms of Elliott Wave theory , Gold seems to have completed the corrective waves , and we can expect the start of an impulsive wave . Breaking the Resistance zone($3,280-$3,245 ) can be a good sign for the start of an impulsive wave and a gold pump .
I expect Gold to trend higher in this week , and the first sign could be a break of the Resistance zone($3,280-$3,245) . The targets are clear on the chart.
Note: If Gold touches $3,179 , we should expect a drop.
Gold Analyze ( XAUUSD ), 1-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy; this is just my idea, and I will gladly see your ideas in this post.
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GOLD → Short squeeze before a drop to 3150?FX:XAUUSD is consolidating. The market needs a driver, but due to the unstable fundamental background, traders have switched to a wait-and-see mode. Consolidation could turn into strong movement at any moment. But in which direction?
Gold under pressure: the market is waiting for signals from the Fed and negotiations. The dollar is putting pressure on the market amid expectations of trade negotiations with India, South Korea, and Japan, as well as statements from the Fed.Earlier, the metal was supported by the weak dollar after Moody's downgraded the US credit rating, but growing interest in risky assets and hopes for peace between Russia and Ukraine reduced demand for gold. Key factors — negotiations and comments from the Fed — will continue to influence the dynamics of the dollar and gold.
Technically, the price is in a downtrend and within consolidation. A breakout from consolidation could be accompanied by strong momentum, but I believe that there will be no countertrend movement and that a retest of resistance could end in a decline...
Resistance levels: 3265.5, channel resistance
Support levels: 3206, 3153
The most likely scenario within the bearish trend is a short squeeze and a downward breakdown from the triangle (the fundamental background and economic risks are slowly but surely declining, and gold may lose value). A false breakout of 3250-3265 could trigger a continuation of the trend towards 3150-3120.
Best regards, R. Linda!
BITCOIN → Consolidation in a triangle amid a BULLISH TRENDBINANCE:BTCUSDT is consolidating. A symmetrical triangle is forming against the backdrop of a bullish trend. Given the current technical nuances, we can bet that this consolidation is forming with the aim of continuing growth...
Fundamental nuances have gradually improved over the past few weeks, and the cryptocurrency market has revived slightly. Technically, I like the market structure on D1. After strong growth, the price is not going to fall, consolidation is forming. The market is bullish, after 2-3 weeks of consolidation, a bullish distribution is forming. The cycle has repeated itself twice. On D1, you can see how long tails are forming downward within the consolidation, indicating that whales are buying up all attempts to fall, keeping the market away from risk zones. Accordingly, at the moment, I would say that consolidation may continue for some time, and I do not rule out an attempt to retest the triangle support before growth, or entry into a deeper zone to retest the distant liquidity zones of 101400 and 100700 before continuing growth.
Resistance levels: 103.6, 104.4, 105.0
Support levels: 102.5, 101.4, 100.6
A decline can be considered if the price breaks the triangle support and sticks to 101400, forming a pre-breakdown consolidation (if there is no upward rebound).
However, at the moment, intraday trading can be considered, i.e., from the consolidation boundaries. A signal to exit the consolidation upwards and continue growth will be consolidation between 103.5 and 105.0 and compression towards the upper boundary.
Best regards, R. Linda!
GUN/USDT – Breakout Retest in Play!🚀 GUN Breakout Alert – 100% Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
GUN just completed a clean breakout from a long-term symmetrical triangle and is now retesting the breakout zone — a classic bullish continuation signal! 🔁
✅ Strong breakout followed by healthy pullback
✅ Retesting previous resistance turned support
✅ Perfect technical structure for a potential explosive move ahead 💥
📍 Entry: CMP and add more around $0.051
🎯 Target: $0.107
🛑 SL: Close below $0.047
📊 Leverage: Use low leverage (Max 5x) for safety
Momentum looks primed for another 100%+ rally if support holds.
Let’s ride this wave! 🌊
What do you think about this? Share your views in the comments section.
MAGIC Breaking Out – Next 100% Move on the Horizon?🚀 MAGIC Breakout Alert – 100% Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
MAGIC has finally broken out from a long-standing symmetrical triangle on the 4H chart — a classic bullish reversal pattern. After consolidating tightly, it's now flashing signs of a strong upward impulse! ⚡
📌 Entry: CMP ($0.200) and add more on dips up to $0.195
🎯 Targets: $0.25 / $0.29 / $0.33 / $0.39
🛑 Stoploss: Close below $0.176
⚙️ Leverage: 5x (Max)
✨ Previous breakout delivered over 100% gains — this one could be next!
Chart structure + volume looks perfect. If BTC stays calm, we might witness another explosive move in MAGIC.
💬 What are your thoughts on this setup? Drop your opinions below and don't forget to like & follow for more high-conviction trade setups! 💥
EPT/USDT Breakout Alert – Triangle Resolved, Targets Set!🚀 EPT Breakout Alert – 100% Potential Incoming?! 👀🔥
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EPT has just broken out from a symmetrical triangle on the 2H chart, indicating the start of a potential bullish wave. After weeks of consolidation, this breakout looks strong and is supported by increasing momentum.
📌 Entry: Current Market Price (CMP) – $0.0110
📉 Add More on Dip: Down to $0.0104
🎯 Targets:
TP1: $0.0138
TP2: $0.0165
TP3: $0.0194
TP4: $0.0223
🛑 Stop Loss: $0.0092
⚙️ Leverage (Optional): 3x–5x
A clean structure, breakout confirmation, and tight invalidation level make this setup attractive for short-to-mid-term swing traders.
💬 What do you think about this move? Are you in? Drop your thoughts below!
WCT Breakout Confirmed – Ready for Lift-Off?🚀 WCT Breakout Alert – 80% Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
WCT has finally broken out of its long-standing symmetrical triangle on the 4H timeframe 🔥. After weeks of consolidation, we’re seeing a fresh move building up, hinting at strong momentum ahead.
🔎 Chart Insights:
✅ Breakout above resistance zone ✔️
📈 Retest happening around the breakout zone ✔️
📊 Previous pump: 81% surge! Will history repeat?
Trade Idea:
Entry: Current Market Price (CMP) and add more in dip
Targets: $0.44/$0.48 / $0.56 / $0.68 🎯
Stop Loss: $0.35 🚨
Lev: Use low leverage (Max 5x)
The chart looks clean with solid structure—keep an eye as this can build up for a big move 💥.
💬 What’s your take? Drop your analysis or ride along with this setup!
BANK / USDT Long Trade Setup – Big Breakout Watch!🚀 BANK Breakout Alert – 100%+ Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
BSE:BANK has broken out of a massive symmetrical triangle on the 1H chart — signaling a potential continuation move after a long consolidation! ⚡📈
📌 Entry Zone: $0.0372 – $0.0390 (current breakout area)
🎯 Targets:
• Target 1 → $0.0450
• Target 2 → $0.0520
• Target 3 → $0.0600
Target 4 → $0.0720
Target 5 → $0.0820
🛡 Stop Loss (SL): $0.0350 (below breakout support)
🔑 Why this setup matters:
✅ Clean breakout after long consolidation
✅ Strong bullish volume on breakout
✅ Previous breakout gave +114% move!
⚠️ Always manage your risk — breakouts can retest!
💬 What’s your target on BSE:BANK ? Drop your thoughts below! 👇👇👇
FORM / USDT Long Setup – Major Breakout Alert!🚀 FORM Breakout Alert – 50% Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
FORM has officially broken out of a massive symmetrical triangle on the 4H chart after weeks of tight consolidation. This is a classic technical setup that often leads to explosive moves, and the market is starting to pay attention! ⚡📈
📍 Entry Zone: $2.12 – $2.16
✅ Entry around the current breakout zone to catch early momentum.
🎯 Targets:
• Target 1 → $2.60 (key horizontal resistance)
• Target 2 → $2.90 (major breakout extension zone)
• Target 3 → $3.10+ (blue-sky breakout level)
🛡 Stop Loss (SL): $2.06 (just below the lower trendline and support zone)
💥 Why this setup is exciting:
✅ Clean triangle breakout after multi-week compression
✅ Strong historical pattern — last breakout ran over +50%
✅ EMA alignment turning bullish
✅ Volume spike on breakout confirmation
✅ Market sentiment improving with higher lows on the chart
🔑 Pro Trading Tips:
Watch for a retest of the $2.15 breakout zone — it may offer a second-chance entry.
Scale out profits gradually at each target zone to lock in gains.
Always use proper position sizing and stick to your SL to manage risk.
📢 Final Thoughts:
This setup has the technicals lined up for a potential trend expansion. If momentum continues and we see a confirmed retest, NASDAQ:FORM could deliver a textbook bullish move. Don’t ignore the opportunity — but trade smart!
💬 What’s your game plan for NASDAQ:FORM ? Share your targets, strategies, and thoughts below — let’s learn and win together! 👇👇👇
Gold's Symmetrical Triangle Near Break – Support Test Imminent!Gold ( OANDA:XAUUSD ) moved as I expected in my previous post and attacked the Support zone($3,282-$3,245) and Support lines for the second time . The question is, can Gold break the Support zone($3,282-$3,245) and Support lines or not!?
Please stay with me .
Gold is moving between Support zone($3,282-$3,245) and Resistance zone($3,386-$3,357) again . In fact, it can be said that Gold has been moving in a range for the past 5-6 days .
From a Classical Technical Analysis perspective, Gold appears to be forming a Symmetrical Triangle Pattern. A break of either line could indicate the next direction for Gold, but since the Symmetrical Triangle Pattern is a Continuation Pattern , the lower line is more likely to break .
In terms of Elliott Wave Theory analysis , it seems that we still have to wait for the next five downwaves .
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Today, important U.S. data — JOLTS Job Openings and CB Consumer Confidence — will be released.
Let’s quickly review their potential impact on Gold:
JOLTS Job Openings :
If the number comes lower than expected , it signals a weakening labor market, increasing the chances of a dovish Fed → Bullish for Gold .
If the number is stronger than expected , it indicates a robust labor market, pushing the Fed to stay hawkish → Bearish for Gold .
CB Consumer Confidence :
A drop in consumer confidence reflects economic worries , driving demand for safe-haven assets like Gold → Bullish .
A rise in consumer confidence shows economic strength, reducing the appeal of Gold → Bearish .
Historical Impact :
Both indices have caused strong intraday moves in Gold recently, especially if the figures surprise the market.
Summary :
Weak JOLTS and low Confidence → Gold bullish
Strong JOLTS and high Confidence → Gold bearish
Be prepared for high volatility during the releases. Always manage your risk carefully!
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I expect Gold to attack the Support zone($3,282-$3,245) and Support lines for at least the third time , and if it breaks, the next target could be $3,223 .
Note: If Gold can move above $3,393, we can expect more pumps and maybe make a new All-Time High(ATH).
Gold Analyze ( XAUUSD ), 1-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy; this is just my idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
MEME/USDT: BREAKOUT ALERT!!🚀 MEME Breakout Alert – 40%+ Potential Incoming?! 👀🔥
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🚀 AMEX:MEME / USDT Long Setup – Breakout Watch! 🚀
AMEX:MEME is squeezing inside a symmetrical triangle on the 1H chart and is now testing breakout levels! Get ready for a potential explosive move! 📈⚡
📊 Trade Setup:
✅ Entry: CMP and add more in dip
✅ Targets:
• Target 1 → $0.00260
• Target 2 → $0.00290
• Target 3 → $0.00302+
🛡 Stop Loss (SL): $0.00207 (below triangle support)
📌 Why this setup?
Tight consolidation near apex
Strong EMA support
Previous breakout gave ~40% move!
⚠️ Risk management is key! Wait for confirmation, and always stick to your SL.
💬 Share your thoughts below — bullish or cautious on MEME? Let’s discuss! 👇👇
RARE/USDT: LOW RISK, HIGH REWARD SETUP!!🚀 RARE Breakout Alert – 150%+ Potential Incoming?! 👀🔥
Hey Traders! If you're all about high-conviction plays and real alpha, smash that 👍 and tap Follow for more setups that actually deliver! 💹💯
RARE/USDT just broke out of a symmetrical triangle on the 4H chart and is now perfectly retesting the breakout trendline. If this level holds, we could be gearing up for a massive upside move in the coming days. 📈🔥
🔹 Entry: CMP
🔹 Targets: 130%–150%
🔹 SL: $0.0538
🔹 Leverage: Low (Max 5x recommended)
💡Strategy Tip: Go in with tight risk management. Consider adding on spot for a safer ride!
💬 What’s Your Take?
Jumping in early or waiting for confirmation? Let’s chart this journey together—drop your analysis, targets, or questions in the comments! 💰🧠
GOLD → If you didn't catch the train, what should you do?FX:XAUUSD in a rally. Running into a train that is already in motion is prohibited due to the lack of ability to calculate risks. Ahead of the news, a correction is possible, which will allow us to find a place to trade
Gold continues to update an all-time high on the back of expectations of retail sales in the US and the speech of Fed chief Powell. Price growth was supported by strong data from China, increased demand for “protective assets” due to geopolitical tensions and trade risks between the U.S. and China. Additional support was provided by forecasts of gold price growth from ANZ to $3,600 by the end of the year
Technically, the psychological zones of interest 3325 - 3350 are ahead, from which a correction may form. The ideal scenario is to wait for a correction to local or intermediate support levels and only there look for an entry point.
Resistance levels: 3318, 3335, 3350
Support levels: 3275, 3265, 3244
On the background of a strong bull market it is worth using as a productive strategy to trade on the breakdown of resistance in order to continue growth, but in this case we need to wait for consolidation, we do not have it.
Or wait for correction, support retest and only then consider buying.
Regards R. Linda!
COMI Egypt can exceed 104 in 6 monthsWeekly chart,
The stock EGX:COMI has formed a symmetrical triangle chart pattern, and crossed the Resistance line R.
One more week above R, to confirm, the target will be 104.3 - passing through several resistance levels as shown on the chart.
A new entry (buy) can be made immediately before confirmation with higher risk, and consider a stop loss below 76.0
Technical indicators RSI and MACD are positive.
NOTE: Keep a near Profit Protection/ Stop Loss level.
CADJPY → Consolidation before the news. DowntrendFX:CADJPY continues to forge a downtrend, but within the current movement a symmetrical triangle of accumulative nature is forming
The currency pair may continue its decline due to the strengthening of the Japanese Yen, while the Canadian is consolidating in a narrow range.
The situation may be accelerated by today's news, namely Trump's speech, where he may announce new tariff measures.
Technically, the price is correcting after the false break of 103.56, being below the previously broken upside support. Price is testing key resistance at 104.90, and against 0.5 Fibo is forming a false breakout. A consolidation below 104.69, a break of 104.525 could trigger further decline.
Resistance levels: 104.900, 105.36, 105.74
Support levels: 104.525, 103.56
There are important news ahead, high volatility is possible, especially at the moment of Trump's speech, which may set a medium-term tone in the market.
The currency pair is in consolidation on the background of the downtrend and the priority is to expect a continuation of the fall
Regards R. Linda!
Can EURUSD Take Out the Major High 1.12000?EURUSD Major Forex Pair
Following Trump’s tariff policies announced on Friday, the price of the EURUSD forex pair broke the daily higher high structure and is now returning to retest that level. This morning, the price bounced off the 0.618 daily Fibonacci level, suggesting that it may move upward again, potentially reaching the major high around 1.12000 or hitting one of the Fibonacci extension levels.
Price Action on the 4-Hour Chart
I have shifted down to the 4-hour chart to analyze the price action in more detail. While it appears somewhat chaotic due to Friday's news and the aggressive bullish impulse, it’s encouraging that the price broke through the higher high structure and is now retesting it.
At this point, I would like to see the price remain above the 0.618 daily Fibonacci level and stay within the upward trendline. Additionally, the price is forming a symmetric triangle. Once it breaks out of this pattern, I plan to enter a buy position with a risk-to-reward ratio of 1:2, targeting the supply area near the major high.
I will provide an update as more price action develops later in the week, so stay tuned!
Bitcoin's Symmetrical Triangle – a short trade possible here!Bitcoin is currently forming a symmetrical triangle on the 15-minute chart, with a falling resistance trendline and a rising support trendline. This setup is a classic indication of consolidation, and the price is likely to move for downside soon as it is reversing from upper band now. If Bitcoin manages to break above 83,737, we could see a breakout of this symmetrical triangle, On the flip side, if it breaks below the rising support, 82,313 could breakdown for downside and we can see further downside then, but now we are playing inside the symmetrical triangle only and we will try to book profit once price reaches lower band of the symmetrical triangle pattern.
Disclaimer: This analysis is for educational purposes only. Please consult a financial advisor before making investment decisions.
If you Found this helpful? Don’t forget to like, share, and drop your thoughts in the comments below.
BITCOIN → The price is consolidating, but there is a BUT!BINANCE:BTCUSDT is forming a consolidation after a false breakout of trend resistance. Against the backdrop of the global market crash (stock market, futures, forex) bitcoin looks quite strong, but I wouldn't get excited ahead of time
Bitcoin is trading inside a downtrend and also inside a range (global 81200 - 88800 and local 81200 - 85600). As long as the price is inside the local range and below trend resistance it is worth considering selling. There have been periods in history when the price seemed strong in the moment, but then, bitcoin caught up with the fall of indices...
The fundamental background for bitcoin is unstable:
First of all, the price has hardly reacted in any way to the introduction of tariffs, backlash and economic data. The Fed is not giving a clear signal, the market is in uncertainty. Any info noise ( China, Fed rhetoric, company reports ) can cause shake-ups. But at the same time, the same old problems remain: the crypto community is not getting any support. Bitcoin's dominance is growing against the backdrop of its decline. Altcoins continue to storm the bottom.
Technically , the situation is weak, the price cannot update local highs and consolidate above any strong support. It is possible to retest the trend resistance, or the zone of interest 85590 before the reversal and fall. Or, emphasis on the trigger 81187. A breakdown will provoke an impulse.
Resistance levels: trend, 85585, 88840.
Support levels: 81187, 78170, 73500
Buying in the medium term can be considered either after reaching the main target - 73-66K, or after the exit from the descending channel and price fixation above 88840. Now the emphasis is on a possible fall either from the resistance 85580, or when the support 81180 is broken
Regards R. Linda!
GOLD → It all depends on NFP and Powell....FX:XAUUSD got shaken by 600 pips on both sides. Technically, after such a move the price may go into consolidation, but the near-term outlook will depend on NFP and Powell.
Gold hit a high of 3168 and went into correction. President Trump's imposed duties on imports from China (up to 54%) and other countries caused a sharp drop in the dollar and bond yields, reinforcing expectations of a Fed rate cut. Traders turned to profit-taking, which led to a correction. Now the market is waiting for the NFP report and Powell's speech. Weak data may return the upward momentum to gold, especially if the dovish rate expectations are confirmed. However, volatility may persist after the publication, given the impact of Friday's flows and Powell's speech
Resistance levels: 3107, 3116, 3135
Support levels: 3086, 3067, 3055
Technically, it is difficult to determine a clear place from where to expect a move as there is news ahead (NFP, Powell's speech). But based on the falling dollar and high economic risks, we can bet on the continuation of the price growth from one of the mentioned support levels: 3086, 3067, 3055.
Exit from the channel and consolidation of the price above 3110 - 3116 will again attract increased interest in buying
Regards R. Linda!
Triangle Chart Patterns: How to Identify and Trade ThemTriangle Chart Patterns: How to Identify and Trade Them
Triangle chart patterns are essential tools in technical analysis, helping traders identify potential trend continuations. These formations build as the price consolidates between converging trendlines, signalling an upcoming move in the market. In this article, we’ll explore the three types of triangle patterns—symmetrical, ascending, and descending—and how traders use them to analyse price movements.
What Are Triangle Chart Patterns?
Triangle chart patterns are a common tool used to understand price movements in the market. These patterns form when the price of an asset moves within two converging trendlines, creating a triangle shape on a chart. The lines represent support and resistance levels, and as they get closer together, it signals a potential breakout in one direction.
Symmetrical, ascending, and descending are three types of triangle patterns. Each of these patterns reflects a different market sentiment, with symmetrical triangles showing indecision, ascending triangles suggesting a bullish bias, and descending triangles hinting at bearish momentum. These formations are useful because they help traders spot potential breakouts, where the price might move sharply up or down after a period of consolidation.
It’s important to note that triangles and wedge patterns are similar but not the same. Both patterns involve converging trendlines, but wedges tend to slope upward or downward. Triangles, on the other hand, either feature one horizontal trendline and a sloping trendline or two sloping trendlines at roughly the same angle.
Below, we’ll cover the three triangle types. If you’d like to follow along, head over to FXOpen and TradingView to get started with real-time charts.
Symmetrical Triangle
The symmetrical triangle is a popular chart pattern that shows up when the price of an asset starts consolidating within a tighter range. Unlike other triangle patterns, it doesn’t lean heavily in either direction—bullish or bearish—making it a neutral signal. It forms when buyers and sellers are in a bit of a standoff, with no clear trend in sight. However, this period of indecision often leads to a significant move once the price breaks out of the pattern.
What Does It Look Like?
- Two converging trendlines;
- One sloping down from the highs (resistance);
- One sloping up from the lows (support);
- The price oscillates between these two lines, forming lower highs and higher lows;
- The formation narrows as the lines get closer together, creating a point of breakout.
What Does It Indicate?
A symmetrical triangle pattern indicates a period of indecision in the market. Buyers and sellers are evenly matched, causing the price to move within a narrowing range. As it gets smaller, the pressure builds, and the price is likely to break out either up or down. Since the formation is neutral, the breakout could occur in either direction, and traders wait for this moment to see where the market is heading.
How Do Traders Use It?
Traders typically watch for a breakout from the symmetrical triangle to signal the next significant price movement. They often look for an increase in trading volume alongside the breakout, as this can confirm the strength of the move. In most cases, it’s used as a signal for potential price continuation. However, some traders see it as a reversal indicator, depending on what the preceding trend looks like.
Ascending Triangle
An ascending triangle is a bullish triangle pattern that’s often looked for when analysing potential price breakouts. It usually forms during an uptrend but may also appear in a downtrend. It suggests that buyers are becoming more aggressive, while sellers are struggling to push the price lower, creating a situation where the market might break upwards.
What Does It Look Like?
- A horizontal resistance line at the top (price struggles to break above this level);
A rising trendline at the bottom, connecting higher lows (buyers are stepping in earlier each time);
- The price moves between these two lines, creating a triangle shape;
- The formation narrows over time, putting pressure on the resistance level.
What Does It Indicate?
An ascending triangle pattern signals that buyers are gaining control. While the price keeps hitting a ceiling (resistance), the higher lows show that the market’s buying pressure is increasing. This often leads to a breakout above the resistance level, where the price can make a significant upward move. Traders usually see this formation as a sign that the market is primed for a continuation of the current uptrend. However, sometimes it can appear in a downtrend and signal a trend reversal.
How Do Traders Use It?
Traders typically use the ascending triangle to spot potential breakouts above the resistance level. When the price finally moves and closes above this line, it’s seen as confirmation that the upward trend is continuing. Many also pay close attention to the trading volume during this breakout—rising volume can confirm that the breakout is genuine.
In some cases, the price may break through the resistance quickly, while in others, it could take time before the upward move happens. There may also be false breakouts before the true bullish move occurs, with the price typically closing below resistance.
Descending Triangle
A descending triangle is a bearish chart pattern that signals potential downward movement in the market. It typically forms during a downtrend but can also appear in an uptrend. It shows that sellers are becoming more dominant, while buyers are struggling to push the price higher, which could lead to a breakdown below a key support level.
What Does It Look Like?
- A horizontal support line at the bottom (price struggles to break below this level);
- A descending trendline at the top, connecting lower highs (sellers are pushing the price down);
- The price moves between these two lines, creating a triangle shape;
- The formation narrows over time, with the pressure building on the support level.
What Does It Indicate?
A descending triangle chart pattern suggests that sellers are in control. While the price holds at the support level, the series of lower highs shows that selling pressure is increasing. This often leads to a breakdown below the support line, where the price might experience a sharp decline. Traders see the formation as a bearish signal, indicating that the market could continue its downward trend.
How Do Traders Use It?
Traders typically use the descending triangle to identify potential breakdowns below the support level. When the price falls and closes below this line, it’s considered confirmation that the sellers have taken over and that further downside movement could follow.
Similar to other triangle patterns, it’s common to watch for a rise in trading volume during the breakdown, as it can confirm the strength of the move. It’s also possible to see false breakouts below the support level when the price closes back inside the pattern almost immediately.
How Traders Use Triangle Patterns in Technical Analysis
These patterns are just one piece of the puzzle in technical analysis, but they can offer us valuable insights when used correctly.
Triangle Pattern Trading: Entry, Stop-Loss, and Profit Targets
Entry Points
Traders typically wait for a confirmed breakout from the triangle formation’s boundaries before entering a trade. For ascending triangles, this means watching for the price to break above the upper trendline (resistance), while for descending triangles, they look for a breakdown below the lower trendline (support). In a symmetrical triangle, the breakout may be in either direction, usually informed by the broader market trend.
The entry is often confirmed by a closing candle above or below these key levels to reduce the risk of false breakouts.
Stop-Loss Placement
Stop-loss orders are crucial here. For ascending triangles, stop losses might be placed just below the last swing low, while for descending triangles, they might be set just above the recent swing high. In the case of symmetrical triangles, traders often place the stop-loss just outside the formation’s apex.
Profit Targets
To set profit targets, traders typically use the triangle's height (the distance between the highest and lowest points). This height is then projected from the breakout point, offering a realistic target for the trade. For example, if a triangle stock pattern’s height is $10 and the breakout occurs at $50, the target would be $60 for a bullish move.
Combining with Market Context
Triangles may become more reliable when considered in the context of the broader market environment. Traders don’t just look at the pattern in isolation—they analyse the prevailing trend, market sentiment, and even macroeconomic factors to gauge whether a breakout aligns with the larger market movement. For instance, an ascending formation in a strong uptrend adds confidence to the idea of a bullish breakout.
Using Other Indicators for Confirmation
While triangles provide a useful framework, they’re usually combined with other technical indicators for confirmation. Traders often align triangles with volumes, moving averages, or momentum indicators to assess whether the breakout has strong support behind it. For instance, a breakout confirmed by high volume or a moving average crossover might add confluence to the trade.
Limitations and Considerations of Triangle Patterns
Triangles are useful tools in technical analysis, but they come with limitations and important considerations. While they can signal potential breakouts, it’s essential to approach them cautiously.
- False Breakouts: Triangles often experience false breakouts, where the price briefly moves beyond the trendline but quickly reverses. This may trap traders in unfavourable positions.
- Subjectivity: These formations are open to interpretation. Different people may draw trendlines slightly differently, leading to varying conclusions about where the breakout occurs.
- Need for Confirmation: Relying solely on patterns can be risky. They may work better when combined with other indicators, such as volume or moving averages, to confirm the trend direction.
- Market Conditions: In volatile or news-driven markets, chart patterns may not behave as expected, reducing their reliability. They may provide false signals or lose significance in these situations.
The Bottom Line
Triangle chart patterns are popular tools among those looking to analyse market movements and potential breakouts. Whether it’s a symmetrical, ascending, or descending triangle, these patterns provide valuable insights into price consolidation and future trends. While no pattern guarantees a winning trade, combining triangles with other indicators may improve market analysis.
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FAQ
What Is a Triangle Chart Pattern?
A triangle chart is a pattern in technical analysis that forms when the price of an asset moves between converging trendlines, creating a triangle shape on a price chart. They typically signal a period of consolidation before a strong potential breakout in price.
What Are the Patterns of Triangles?
There are three main types of triangles in chart patterns: symmetrical, ascending, and descending. Symmetrical triangles indicate indecision in the market while ascending triangles are often bullish, and descending triangles tend to be bearish.
How to Trade a Triangle?
Traders typically wait for a confirmed breakout from the triangle’s trendlines. According to theory, entry points are based on a breakout above resistance or below support, with stop-loss orders placed just outside the triangle. Profit targets are often set based on the height (the distance between the highest and lowest points) of the pattern.
What Is the Triangle Pattern Strategy?
The triangle pattern strategy involves waiting for a breakout and using the formation’s height to set profit targets. It’s combined with tools like volume, moving averages, and momentum indicators to confirm the move and avoid false breakouts.
Is the Triangle Pattern Bullish or Bearish?
They can be both bullish and bearish. Ascending triangles are generally seen before a bullish movement, descending triangles are bearish, and symmetrical triangles can be either.
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ICID Egypt - A bullish long-term patternWeekly chart,
The stock EGX:ICID is trading inside a symmetrical triangle pattern between Support and Resistance lines (S and R)
The technical indicator RSI can be seen as drawing the same pattern (waiting for crossing up the R RSI line as a confirmation).
MACD is crossing up its signal line.. However, it is still technically negative.
So, I can expect a new bullish movement towards the Resistance line (at around 4.45)
Crossing up the R line and trading above it for 3 weeks - with high volume, the long term target will be 7.45
NOTE: Consider a near profit protection / stop loss level for this stock, as it is volatile and impulsive!
IPUSDT → Exit from the triangle may trigger a distribution ofBINANCE:IPUSDT.P is forming positive preconditions for possible growth. Bitcoin slightly revitalized the market after positive news related to SEC and XRP (the crypto community did not miss this fact)
The IP coin was in consolidation for a long time - a symmetrical triangle. Rising lows, consolidation, breakout of triangle resistance give positive signs of readiness for distribution (realization of consolidation). Ahead is the key resistance at 5.6297 separating the market from the free zone
Resistance levels: 5.6297, 6.631
Support levels: 5.116, 4.783
Price has been sticking to triangle resistance for the past few days and is gaining potential for breakout and realization. Numerous intraday retests of the area indicate the market's interest to break beyond this zone. A breakout of 5.6297 and price consolidation above the triangle will be a good signal of readiness to go up.
Regards R. Linda!
