Forex Continuation Candlestick Pattern – Triangles
July 30, 2010 by Kelvin
Filed under Forex Strategies
This post is inspired by one of the reader of this blog. In this post, I will be sharing with you how I draw triangles candlestick pattern on my chart.
First of all, let me go through some basic information about the this candlestick pattern. The triangles are simply a sign of consolidation and it usually occurs after a big rise or fall in price. There are basically 3 main types of triangles and they are
- Ascending
- Descending
- Symmetrical
So let us go through them one by one
1) Ascending Triangle – The ascending triangle is a sign of continuation pattern and it usually occurs after a big upward movement. It is made up of a flat top and a positively sloped bottom.
Drawing of triangle is not hard; the hard part lies in the identifying of it. Once you have seen the formation of an ascending triangle, you can then draw a horizontal line on the flat top and then draw a slanted bottom that passes through the swing lows.
See an Ascending Triangle?
Draw Ascending Triangle
2) Descending Triangle – The descending triangle is also a continuation pattern and it usually occurs after a big down move. It is opposite to the ascending triangle. This is formed by a flat bottom and a negatively sloped top. The way to draw this triangle is by drawing a horizontal bottom and a slanted line that joins the swing highs.
3) Symmetrical Triangle – The symmetrical triangle can occur either after a strong up move or down move. For this triangle, it is made up of 2 slanted lines on its top and bottom.
See a Symmetrical Triangle?
To draw this pattern, you just have to connect the swing lows to form the bottom and then connect the swing highs to form the top.
Draw a Symmetrical Triangle
If you see this formation after an up move, the price is actually consolidating and will most probably break upward.
If you see this formation after a strong down move, the price is also consolidating after that big movement and will most probably break downward.
I hope that you understand the whole concept about triangular formation and if you have any queries, do feel free to leave a comment below and I will try my best to answer you. If you have other things about triangle that you want to share with us, you can also leave a comment below as this platform is meant for traders to share our views.
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VERY UNDERSTANDABLE EXPLANATION OF THE TRIANGLE ISSUE. THANK YOU FOR YOUR CONSISTENT AND DEDICATED WORK FOR US.