Triangles are one of the pattern formations in the chart which helps traders to predict what would be the next move. The triangle formations are classified into three types,
1. Symmetrical triangle
2. Ascending triangle
All three triangles differ in shape and their prognostic functions.
Usually, the Symmetrical triangle continues with the previous trend. This model starts to form with a twist in pattern formation with two converging lines. The model ends when the price range outraged from the converging lines and every triangle needs a minimum of four control points to decide the trend movement. Moreover, the triangle completion needs some long span to complete the formation.
The Ascending & Descending triangle.
The ascending and descending triangle similar to the symmetric triangle but these only differ in its prognostic functions. Oftently, ascending triangle forms when the market attracted more buyers than sellers, this model is considered to be a bullish one and usually ends with the price breakout beyond the upper line. The breakout must be accompanied with a sharp increase in Volume.
Descending triangle formation is the mirror replica of Ascending triangle and considered as bull reversal formation, forms in bearish zone. This action states more active sellers than buyers and ends with the price drop.
In this model the price range closing beyond the lower trend line and accompanied by an increase in volume.
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