Triangle is a classic price action pattern that is applied by technical analysts to make predictions trading different financial markets.
Depending on the shape of the triangle, there are three main variations of this pattern. Its meaning changes dramatically from one to another so it is crucially important for you to know the difference.
👉 The symmetrical triangle is determined by two contracting trend lines. The pattern is considered to be indecisive meaning that while the market is stuck within, the directional bias is unknown.
Only the breakout of a boundary of a triangle clarifies the future direction.
👉 In contrast, the ascending triangle (also called a bullish accumulation) is a classic example of a bullish biased pattern. With a horizontal trend line serving as resistance and a rising trend line service as support, the market is accumulating volumes for a bullish breakout.
Once the horizontal resistance is broken, bullish continuation follows.
👉 The descending triangle is a bearish biased pattern. Also called a bearish accumulation, the pattern indicates the preparation of the market participants to set a new low after consolidation and contraction within a triangle.
Once the horizontal support is broken, bearish continuation follows.
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FXKENNY1000
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@davidbarratt, do you trade Wyckoff? Ever heard of Mentfx?
davidbarratt
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@FXKENNY1000, Can't say I have, no. I stay in my own lane
dilaaqyare
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nice
Learningcurve12
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isnt it about the direction price breaks out of triangle , rather than shape of triangle itself
karlosmac
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@Learningcurve12 agreed these patterns might have a bullish or bearish bias but even so you still have to wait for the breakout and that could be either way.