Forex Continuation Candlestick Pattern – Triangles
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
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.
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.
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.
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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