Main Menu

• Technical analysis
• Fundamental analysis
• Forex analytics
• Trading practice
• Money management
  
• Forex articles
• About brokers
• Additional info
• Learn forex
• Forex for beginners
• Funny forex

Home >  Technical analysis >  Graphical methods >  Figures > Triangle

Triangle

There are 4 kinds of triangles in technical analysis:

• Ascending triangle
• Descending triangle
• Symmetrical triangle
• Extending triangle

Triangles take longer to form than pennants or flags. They generally form over a period of three days to three weeks and quite often form after a major price move.

This type of pattern characterized by a series of progressively lower peaks and higher troughs is a sign of market indecision. The price usually breaks out of this pattern by an amount equal to the base of the triangle and in the direction of the original trend. As with symmetrical triangles one would expect the move from the apex to equal the base of the triangle.

There should be at least four points of contact to the two trend lines before a breakout occurs. In these patterns, where one of the trend lines is horizontal the direction of breakout can be predicted. For example with an ascending triangle the buyers are clearly more aggressive than the sellers, each attempt at a pullback stops at an earlier stage.