AUDCAD 4H SELL
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KEY TAKEAWAYS
A triangle is a chart pattern, depicted by drawing trend lines along a converging price range, that connotes a pause in the prevailing trend.
Triangles are similar to wedges and pennants and can be either a continuation pattern, if validated, or a powerful reversal pattern, in the event of failure.
There are three potential triangle variations that can develop as price action carves out a holding pattern, namely ascending, descending, and symmetrical triangles.
Understanding Triangle Patterns
Triangle patterns are aptly named because the upper and lower trend lines ultimately meet at the apex on the right side, forming a corner. Connecting the start of the upper trend line to the beginning of the lower trend line completes the other two corners to create the triangle. The upper trend line is formed by connecting the highs, while the lower trend line is formed by connecting the lows.
A triangle is a chart pattern, depicted by drawing trend lines along a converging price range, that connotes a pause in the prevailing trend.
Triangles are similar to wedges and pennants and can be either a continuation pattern, if validated, or a powerful reversal pattern, in the event of failure.
There are three potential triangle variations that can develop as price action carves out a holding pattern, namely ascending, descending, and symmetrical triangles.
Understanding Triangle Patterns
Triangle patterns are aptly named because the upper and lower trend lines ultimately meet at the apex on the right side, forming a corner. Connecting the start of the upper trend line to the beginning of the lower trend line completes the other two corners to create the triangle. The upper trend line is formed by connecting the highs, while the lower trend line is formed by connecting the lows.
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