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Symmetrical Triangle

4 Triangle Types You Need to KnowTriangle chart patterns offer valuable insights into market dynamics, symbolizing a clash between buyers and sellers within a contracting price range. These patterns are often classified as continuation or neutral patterns, suggesting that the price is likely to persist in its existing trend after the pattern concludes. 1. Symmetrical Triangle: A symmetrical triangle manifests when the slope of the price's highs and lows converges, creating a triangular structure. This pattern signifies a period of consolidation, with lower highs and higher lows indicating equilibrium between buyers and sellers. As the slopes converge, a breakout becomes imminent, though the breakout direction remains uncertain. To capitalize on a symmetrical triangle , consider placing entry orders above the slope of the lower highs and below the slope of the higher lows, prepared to ride the price in the direction of the breakout. 2. Ascending Triangle: An ascending triangle features a resistance level and a slope of higher lows. Buyers gradually push the price up, testing the resistance level. This pattern often signals an upward breakout as buyers gain strength and attempt to breach the resistance. To trade an ascending triangle , set entry orders above the resistance line and below the slope of the higher lows, anticipating a potential upward breakout. However, remain open to movement in either direction, as the resistance level may prove formidable. 3. Descending Triangle: In contrast to the ascending triangle , a descending triangle comprises lower highs forming the upper line, with a robust support level acting as the lower line. Sellers gain ground against buyers, and in most cases, the support line eventually breaks, leading to a continued downward move. To trade a descending triangle , set entry orders above the upper line (lower highs) and below the support line, prepared for a potential breakout. Note that sometimes, the support line may hold, resulting in a robust upward move. 4. Broadening Triangle: Now, let's delve into the captivating Broadening Triangle , also known as a Megaphone Pattern. This pattern stands out due to its expanding price range, creating a distinctive visual pattern on the chart. The Megaphone Pattern comprises a series of higher highs and lower lows, causing the price range to widen over time. This pattern reflects increasing volatility and uncertainty in the market, with both buyers and sellers actively participating. Trading Triangles demands meticulous analysis and risk management due to their nature and potential for unpredictable price moves. To approach Triangle patterns effectively: 1️⃣ Pay attention to the pattern's boundaries: Identify the upper trendline connecting the highs and the lower trendline connecting the lows. These trendlines define the range of price movement within the pattern. 2️⃣ Watch for breakouts and reversals: Triangles often precede significant price movements. Look for breakouts above the upper trendline or breakdowns below the lower trendline as potential trading opportunities. 3️⃣ Confirm with additional indicators: Combine your analysis with other technical indicators or tools to validate your trading decisions. Consider using indicators like moving averages, oscillators, or volume analysis to confirm the pattern's potential direction. Remember, trading Triangles necessitates careful analysis and risk management. Consider the overall market context, fundamental factors, and other technical signals to make informed trading decisions. While chart patterns provide valuable insights, they cannot guarantee future price movements. Always conduct thorough research, stay updated with market news, and adapt your strategy as market conditions evolve. Wishing you successful trading journeys guided by these patterns! 🚀📈✨ 💬 We would love to hear your thoughts and feedback on the article! Please leave your comments and questions below the article. Your input is valuable to us!
Education
by Vestinda
6
JASMY → Consolidation may move into distribution BINANCE:JASMYUSDT is moving to the phase of realization of accumulated potential. On the background of signal from moving averages the market before resistance forms pre-breakdown consolidation. As a result - breakout of the global trend resistance. If you pay attention to the COINBASE:BTCUSD chart, the CRYPTOCAP:TOTAL chart (Total Cryptocurrency Market Capitalization), you can see that against the background of the general crypto hype JASMY is quite inferior to the leading assets. At the moment, the coin is entering the phase of realization of the accumulated potential and against the background of a rather large gap, the coin can show a good, let's say "low start" and form a huge momentum. At the moment our task is to wait for the price to consolidate above the previously broken channel resistance. Consolidation and forging of the bullish potential above 0.0060 will open us the opportunity to enter the market from a relatively safe position. Moving averages are supporting the market. Support levels: 0.0060, 0.005025 Resistance levels: 0.006575, 0.00796 The market is beginning to show prerequisites for bullish dynamics. Price consolidation in the new range will give us a good potential. Regards R. Linda!
Long
by RLinda
6
USO US Crude OIl ETF trending down SHORTUSO on the weekly chart over the past two and a half years makes a symmetrical triangle patter with the upper and lower trendlines drawn in. Price appears to be dropping out of the pattern in a breakdown and she now yet tested the prior support trendline as resistance. The Stochastic RSI and Zero Lag MACD are confirmatory. The Relative volatility indicator shows downward volatility exceeding upward for six weeks now. Putin just met with OPEC+ in Saudi Arabian. It is doubt that the OPEC+ has the fortitude to cut supply to force prices higher. Dropping the price of oil nicely supports global efforts to stymie inflation for the good of all except perhaps OPEC+ and Big Oil. I will take a short position in buying put options on USO. I will strike $ 60 because the puts will be cheaper and I expect the price to drop below that into a volume void on the profile and not be easily able to get above the volume shelf at $63 where I will set the stop. I am targeting $35.00 which is comfortably above the volume profile POC line. I will take an expiration next July during the presidential nominations. Politicians are also wanting oil prices to drop to keep voters happy. All goepolitical events will have a bid in the price action of the puts.
AMEX:USO
by AwesomeAvani
USDCAD → Retest of volume density and key resistance FX:USDCAD is in the phase of trend change. The price begins to form the boundaries of the descending channel, at the same time, against the background of local strengthening of DXY, the currency pair is forming a correction to the resistance area. On d1 we see a global bearish trend in both TVC:DXY and USDCAD currency pair The price is testing the key resistance area, in this place the market is struggling for further positions. At 13:15 GMT ADP NonFarm EC is published, this news is worth paying attention to. It is possible to increase liquidity before further movement in one direction or another. From the currency pair I expect a false breakdown of the mentioned resistance area with the subsequent continuation of the fall to the trend support. It is also worth noting that the market is experiencing peak volume density. Moving trend lines act as resistance. MA-50 has been tested. Resistance levels: 1.3575, 1.3629 Support levels: 1.3545, 1.3485 I expect that after the next retest and false breakdown the price will continue its direction following the trend. Regards R. Linda!
Short
by RLinda
5
Bitcoin Ready To Break Higher On Thanksgiving DayCryptocurrencies are in uptrend for the last few weeks, a move that even accelerated at the end of October and start of November when US yields turned down, which is supported for the cryptocurrencies as the dollar turned down. In fact, US yields are looking toppy after the latest US CPI data, meaning more weakness can be bearish for USD and supportive for the BTCUSD at the same time. Looking at the Bitcoin, there is a nice ongoing triangle pattern here in wave four which is about to break, maybe a volatile session will still show up on thin liquidity due to the Thanksgiving holidays. But normally breaks during holidays may not hold for a long time, which also makes sense from Elliott wave terms as the next leg higher can be the fifth wave, out of a triangle. So a final leg within a bullish impulse that can face some resistance later on at 40k area. S if you are long, maybe you may consider to make tighter stops on the next push up. On the other-hand, if I am wrong and if price will break 35600 swing support from this week, then pullback will be lower and more complex but still correction. In such case deeper supports to watch for a bounce can be at 34k followed by 32k. Trade well, and if you are celebrating I wish you a happy Thanksgiving. Grega
BITFINEX:BTCUSDLong
by ew-forecast
💱 GBPAUD - Consolidation after breaking trend resistance GBPAUD breaks the resistance of the descending channel and forms consolidation. The market is forming a support retest before the upward jerk. Most likely, there is still not enough liquidity for growth, although the pound sterling has been showing bullish dynamics lately. Prerequisites for further growth: 1) Bearish channel resistance breakdown 2) A symmetrical triangle is being formed 3) Break of the triangle resistance will give a signal, the impulse will start. 4) Pound sterling is fundamentally stronger than the Aussie. Key resistance: 1.9338 Key support: 1.8971
Long
by AndeWave
2
Symmetrical Triangle on USD/CAD @ D1This daily chart USD/CAD formation resembles a symmetrical triangle pattern. It can be used for a trend continuation breakout setup. My potential entry is marked with the cyan line, which is located at 10% of the triangle's base width above the upper border. My take-profit will be at the green line, which is located at 100% of the triangle's base width above the upper border. I will set my stop-loss to the triangle's lower corner (1.36292). Bearish breakouts from this formation are to be ignored.
Long
by AndriyMoraru
4
GOLD → The market is ready to continue to growOANDA:XAUUSD is standing still on Thursday, which we were prepared for. The TVC:DXY opens with a subsequent decline on Friday, which gives bullish hopes for GOLD to strengthen. Let's breakdown: On the local timeframe, the prolonged consolidation is forming a symmetrical triangle, but as a strong support area is forming below the pattern and the price is consolidating above the key liquidity zones, the market may try to realize a bullish scenario. This will be facilitated by a break of the triangle resistance, in which case our target will be 2005 and 2010. Also, due to the fact that the price did not test the liquidity area below 1993, 1984, we have a chance to start another correction before further growth. On D1 gold is in a range and since support was tested earlier, resistance is still our prospect. The target is the upper boundary of the range - the area of 2010. Key support: 1993-1992, 1990, 1984 Key resistance: 1998, 2005, 2010 I expect a break of the pattern resistance with further growth to these targets, but since a large liquidity area was formed below the support, the market may test this area before further growth. Regards R. Linda!
OANDA:XAUUSDLong
by RLinda
11
RateGain Assending Triangle Breakout Rate Gain: Support: 425 Resistance: 455 In trading, a triangle breakout refers to a technical analysis pattern where the price of an asset breaks out of a triangular consolidation phase. Triangles are chart patterns formed by converging trendlines that indicate a period of decreasing price volatility as the asset's price moves within a contracting range. When the price eventually breaks out of this pattern, it can signal a significant move in one direction, providing valuable information to traders and investors. Here are the key significances of a triangle breakout in trading: 1. **Potential Trend Reversal or Continuation:** Triangle breakouts can indicate either a potential reversal of the current trend or a continuation of the existing trend. A breakout to the upside suggests a bullish continuation, while a breakout to the downside suggests a bearish continuation. However, it's essential to consider the context of the triangle in the larger price trend of the asset. 2. **Timing Market Entry:** Traders often use triangle breakouts to time their entry into a trade. Once a clear breakout occurs and is confirmed (usually by significant volume and price movement beyond the breakout point), traders may take positions in the direction of the breakout. This can help them catch a substantial portion of the ensuing price move. 3. **Price Targets:** Traders can use the height of the triangle to estimate a potential price target for the asset after the breakout. By measuring the distance between the highest and lowest points of the triangle and adding that distance to the breakout point (for an upside breakout) or subtracting it (for a downside breakout), they can get a rough target for the price move. 4. **Confirmation of Market Sentiment:** A triangle breakout can act as a confirmation of the prevailing market sentiment. If the asset was trading in a tight range, the breakout can show that market participants have made a decisive move in one direction, indicating their confidence in that trend. 5. **Volume Confirmation:** For a triangle breakout to be more reliable, it is essential to have a noticeable increase in trading volume accompanying the breakout. High trading volume during the breakout suggests stronger conviction among market participants, increasing the chances of the breakout leading to a meaningful price move. 6. **Reduced Uncertainty:** Triangles form during periods of uncertainty and indecision in the market. A breakout from the pattern resolves this uncertainty, providing traders with more clarity on the future direction of the asset's price. 7. **Trading Opportunities:** Triangles are common chart patterns and can be found across various time frames. Traders who specialize in chart pattern trading often actively seek these setups as they present potential trading opportunities with well-defined entry and exit points. It's important to note that while triangle breakouts can be powerful signals, they are not foolproof. False breakouts can occur, where the price briefly moves beyond the triangle but then quickly reverses back into the pattern. To mitigate the risk of false signals, traders often use additional technical indicators and analysis to confirm the validity of the breakout before making trading decisions. Additionally, no trading strategy guarantees profits, so risk management and discipline are crucial when implementing triangle breakout trades or any other trading strategies. ⚠️ ⚠️⚠️It's My Study⚠️⚠️⚠️ Before taking any trade Please do your own research and analysis. Disclaimer: 📌I am not a SEBI registered research analyst. Stock market tradings are subject to market risk. 📌I will NOT be Responsible for your PROFIT or LOSS. 📌Please consult your financial advisor before taking any positions.
NSE:RATEGAINLong
by SuperChartz
7
#USDCAD buying opportunity As seen in the chart, we have a symmetrical triangle chart pattern formation on the 4-hour timeframe, suggesting that the price may move higher to test a bearish trendline associated with the chart pattern. Simultaneously, in the lower timeframe, the price is forming a bearish corrective move after a prior bullish impulse on this pair. The price has been unsuccessful in breaking below the support. If the price manages to break the bearish trendline in the lower timeframe, we could anticipate a follow-through, with the price moving at least towards the trendline. From that point, we can evaluate the potential for the next price move. If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Long
by mohemati
1
Solana nearing the precipice of a breakout?We can see that solusd’s price action is now retesting the top trendline of this purple symmetrical triangle it has been in since around august of 2023. Obviously it only matters once we break above this trendline and flip that trendline to solidified support. Until that time one must remain levelheaded and not chase any breakout that is unconfirmed. If it were to trigger a breakout sometime within the next few days the target would be around $50 or slightly higher. The top trendline of this triangle also qualifies as an inverse head and shoulders neckline. We can also see that the measured move target for the breakout from the descending tan channel is above this neckline which increases the probability we will trigger the breakout of the purple triangle on the way up to hit the measured move target of the tan descending channel breakout. *not financial advice*
COINBASE:SOLUSD
by DrDovetail
OXT/USDT TRADE SETUP!!Hello everyone, if you like the idea, do not forget to support it with a like and follow. Welcome to this OXT/USDT Trade setup. OXT looks good here. Breaks out from the symmetrical triangle. Currently, retesting the trendline. Long some here and add more in the dip. Entry range:- $0.073-$0.076 Target1:- $0.086 Target2:- $0.098 Target3:- $0.112 Target4:- $0.134 SL:- $0.070 Buy on the spot or use low leverage. If you like this idea then do support it with like and follow. Thank You!
Long
by CoreCrypto1
ORBS/USDT TRADE SETUP!!Hello everyone, if you like the idea, do not forget to support it with a like and follow. Welcome to this ORBS/USDT Trade setup. ORBS looks good here. Breaks out from the symmetrical triangle and also the cup and handle-like structure. Currently, retesting the neckline. Long some here and add more in the dip. Entry range:- $0.04370-$0.04470 Target1:- $0.049 Target2:- $0.058 Target3:- $0.064 Target4:- $0.070 SL:- $0.041 Buy on the spot or use low-leverage If you like this idea then do support it with like and follow. Thank You!
OLong
by CoreCrypto1
2