There are three triangle formations. 1. Symmetrical Triangle, 2. Rising Triangle, 3. Descending Triangle.
1. Symmetrical Triangle: Symmetrical triangles are interpreted as continuation of formation. Symmetrical triangles are known as a series of decreasing vertices and rising troughs. While the price formations is consolidated, it generally points out struggle between receiving and seller. Generally, price increases on one side after formation of symmetrical triangle. Although symmetrical triangles is supposed as a sign of available trend’s continuation, this prediction is not logical all the time. Volume is a determinant feature for all triangles. Prices move on direction of breakage in consequence of breaking of triangle in a voluminosity way. However; if brekaing of low volume happens, direction should be confirmed by closing two days in a row.
2. Rising Triangle: Rising triangles are detected as upward trend of prices. However; where formation of rising triangle is occured ( in a upward trend or falling trend ) is interpreted differently in terms of prices which will occur in the future. Rising triangle in a upward trend points out continuation of rising. Conversely, if rising triangle is occured in falling trend, that points out change of trend. Actually, rising triangle is occured as sequence of many candles. Rising triangle term originated from being different of two edges of triangle. While upper edge reminds of a fixed line, the second edge is a combination of steadily rising bottoms. Ascending flope shows pressure of receiver. A distinctive decline happens in volumes. When resistance point is passed with volume, generally, this point becomes a new point of support. Formation goals is altitude of triangle.
3. Descending Triangle: Descending triangle is reverse of rising triangle. This Formation points out continuation of decline in descending trend. Conversely, if descending triangle formation occurs in upward trend, this means that trend will change. Descending triangle formation is occurred as being in the lower part of peak point, and testing new bottoms. A distinctive decline happens in volumes. Top line of the triangle or resistance line of the triangle are liable to down. Support line or under line is seen as a straight line. Formation’s goal is altitude of triangle.
- Date: 04 December 2016 Sun 01:11
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