Questions?!?: Descending Triangle
I put this under Tutorial Chart because that is probably where the chart fits the best instead of an Analysis Chart.
I have some questions that I can not seem to find the answers to. So, I thought I would ask everyone on Tradingview to find out the answers since Tradingview IS a learning platform. I apologize if these are amateur/simplistic questions. Also, I'm sorry if there are so many confusing lines but I don't want to put up multiple charts for a few questions.
QUESTION 1:
With descending and ascending triangles, where do you measure from? From the tails or from the body or do you use both the tails and the body? Or does it matter? Because depending on where you measure from, it can give you VERY different answers.
For example) when I used the BODY of the candlesticks (illustrated with the RED triangle) there was a descending triangle forming where the end of the triangle was on May 12th. But if you measure using the TAILS, illustrated with the GREEN lines, the triangle is very different with the ending point as being June 3rd. So, which do you use? The tails or the body? (But if you were using Bars instead of candlesticks on your chart, you would probably be using the tails instead of the body, right?)
QUESTION 2:
When do you redraw the triangle vs consider it to be breaking out of the trend?
For example, on April 30th, if you were looking at this DJI chart, there was a descending triangle forming which I have illustrated with an upper BLUE line and a bottom red line named #1. As of April 30th, the stock was within the triangle and continuing the formation. But on May 3th (yesterday), the market moved slightly out of the triangle formation. Looking at the chart as of May 3rd, would you 1) redraw the triangle or 2) consider it to have broken the trend or 3) wait until the next day, May 4th (today) to see if it does continue breaking out or if it is forming a new triangle? Basically, do you have to wait until the body of the candlestick has fully left the triangle to consider it to have broken out of the trend?
I have some questions that I can not seem to find the answers to. So, I thought I would ask everyone on Tradingview to find out the answers since Tradingview IS a learning platform. I apologize if these are amateur/simplistic questions. Also, I'm sorry if there are so many confusing lines but I don't want to put up multiple charts for a few questions.
QUESTION 1:
With descending and ascending triangles, where do you measure from? From the tails or from the body or do you use both the tails and the body? Or does it matter? Because depending on where you measure from, it can give you VERY different answers.
For example) when I used the BODY of the candlesticks (illustrated with the RED triangle) there was a descending triangle forming where the end of the triangle was on May 12th. But if you measure using the TAILS, illustrated with the GREEN lines, the triangle is very different with the ending point as being June 3rd. So, which do you use? The tails or the body? (But if you were using Bars instead of candlesticks on your chart, you would probably be using the tails instead of the body, right?)
QUESTION 2:
When do you redraw the triangle vs consider it to be breaking out of the trend?
For example, on April 30th, if you were looking at this DJI chart, there was a descending triangle forming which I have illustrated with an upper BLUE line and a bottom red line named #1. As of April 30th, the stock was within the triangle and continuing the formation. But on May 3th (yesterday), the market moved slightly out of the triangle formation. Looking at the chart as of May 3rd, would you 1) redraw the triangle or 2) consider it to have broken the trend or 3) wait until the next day, May 4th (today) to see if it does continue breaking out or if it is forming a new triangle? Basically, do you have to wait until the body of the candlestick has fully left the triangle to consider it to have broken out of the trend?
Trade closed: target reached:
I found the answer online.