Triangles: Example of bearish triangle on daily AudJpy chart
Triangles are also continuation signals like rectangle patterns and flags. Triangle patterns are three types: ascending, descending, and the symmetrical triangle, which is the most common of the three.
Ascending and descending patterns are similar to each other. The only difference is that the ascending triangle has a flat upper trend line. In contrast, the descending triangle has a flat lower trend line.
The symmetrical triangle has the unique ability to form during both up trends and downtrends of the market, and it appears with converging trend lines.
Confirming a continuation is also very simple with the symmetrical triangle as breakout points of the lower trend line during a downward trend is enough indication for the continuation of that downward trend.
Similarly, a breakout of the upper trend line during an upward trend is enough indication for the continuation of that upward trend.
Triangles are also continuation signals like rectangle patterns and flags. Triangle patterns are three types: ascending, descending, and the symmetrical triangle, which is the most common of the three.
Ascending and descending patterns are similar to each other. The only difference is that the ascending triangle has a flat upper trend line. In contrast, the descending triangle has a flat lower trend line.
The symmetrical triangle has the unique ability to form during both up trends and downtrends of the market, and it appears with converging trend lines.
Confirming a continuation is also very simple with the symmetrical triangle as breakout points of the lower trend line during a downward trend is enough indication for the continuation of that downward trend.
Similarly, a breakout of the upper trend line during an upward trend is enough indication for the continuation of that upward trend.