Compare chart patterns between Ascending, Descending and Symmetrical Triangles

Compare chart patterns between Ascending, Descending and Symmetrical Triangles

Triangles Pattern



Triangle patterns are price movement patterns where the trend line is drawn and indicates the shape of a triangle. The important points of the structure are the support, resistance and the corner triangle area, which can be used to predict the direction of a price or the moment that it can fluctuate.



The price movement in the Triangles Pattern can be seen that the prices will squeeze together for a period of time and then shoot up or down in either direction. It's like being so tight that you can't stand which direction to go next, which there are three Triangles Patterns as follows:

ภาพจาก: DailyFX





Ascending



Ascending triangles are price patterns in which the highs are similar to its original counterpart, but can come with higher lows. If you draw a support-resistance line, you can see that the pattern that comes out is an ascending triangle. This pattern has the potential for the prices to rise further. If the price continues to make a higher low or does not fall off the support line.





Descending



The price pattern keeps making lower highs, but the lows stay similar. If you draw a  support - resistance line, you can see that the pattern that comes out is a descending triangle. This pattern has the potential for prices to go lower. If the price continues to make lower highs or is unable to break through the resistance.





Symmetrical Triangles



Symmetrical triangles are price patterns that continuously squeeze in together. The highs will continue to decline and the lows continue to increase. If you draw a support-resistance line, it can be seen that the price is forming a symmetrical triangle, where the direction of the price is still relatively unpredictable. You may have to wait and see when the price approaches the corner of the triangle whether it will rise or fall.





Differences Between Ascending, Descending and Symmetrical Triangles



Firstly, you can see that each triangle pattern is quite similar. They are all signals that indicate uncertainty within a market. However, once the price breaks out of the Triangles, the price immediately jumps in either direction. The difference is only when you draw a line from the highs and lows of the price during the period that you are analyzing.





Conclusion



Triangle Patterns allow us to predict the direction that a price will continue in, as well as the moment when the movement is near to a major trajectory movement, which allows us to plan whether it is appropriate to buy and sell at the moment.



However, studying price patterns may not always be accurate. Investors should take other tools into consideration for more efficient investment and risk management.



You can study other graph pattern in What are Chart Patterns ?





Reference



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