How to trade Forex with Triangle Chart Patterns
Triangle Chart Patterns or charts in the form of triangular patterns have three forms, namely the Symmetrical Triangle, Ascending Triangle, and Descending Triangle. And this pattern includes a type of continuation pattern.
In this pattern is formed when the support line progressively increases and the resistance line progressively decreases to form a symmetrical triangle.
What happens during this pattern is that the market is forming lower high and higher low price levels. This indicates that the seller trader or the buyer are both offering each price as strong so that there is a possibility of experiencing a breakout or breakdown. And the longer the price is conical (obviously).
It can also be said that this pattern is a pattern of warfare between seller and buyer traders who are equally strong so prices are consolidated.
From the chart patterns above, we can see that not only sellers are not able to push prices down according to their prices, but so are buyers who are unable to raise prices according to their wishes. And when this happens we will find lower highs and higher lows.
When the slope of the support and resistance levels has begun to narrow, the possibility of a breakout or breakdown has begun. And how we can benefit from this position is very easy.
We can open a position with an entry point above the lower high slope (meaning our prediction is that an uptrend will occur) and below the higher low slope (meaning our prediction is that a downtrend will occur).
In the example above the price moves up (uptrend) so that we will get legit profits too 🙂 that way we can cancel our order position which predicts the price will drop with the entry point below the higher low slope.
Is a triangle pattern formed due to a line of resistance levels and the slope of the line at the support level.
What happens when this pattern is formed is the emergence of a price level that cannot yet be penetrated by the buyer’s traders even though they are gradually starting to push prices to move up as evidenced by the higher low.
In the chart patterns above we can see that sellers are starting to gain strength by showing a higher low. And they continue to keep the buying pressure at the resistance level and as a result it can be seen that there is a possibility of a breakout or breakdown.
And the question for us is where is the next move 🙂 ? whether the buying trader is able to create a breakout or the resistance level is too strong.
There are lots of references that will say that the buyer’s trader will be able to do a breakout and the price will continue to climb. But based on experience that doesn’t always happen and the fact is that the resistance level is too strong and the buyer’s traders don’t have enough strength to penetrate it.
So the thing that needs to be conveyed here is that we should not be too obsessed in just one direction but must be prepared when there is a move towards the opposite. In this case we will open a BUY position above the resistance and SELL levels below the slope of the higher low line.
In this scenario the buyer traders lose the battle with the seller trader and the price moves down.As seen the fall of this price has the same height as the ascending chart patterns. And if we open a SELL position with an entry point below the higher low slash, of course we will get a decent profit 🙂
is a type of chart pattern that is opposite to the ascending chart patterns pattern. Inside this pattern is formed a slash from the lower high down and a flat line below which is formed from the support level which seems difficult to penetrate the seller’s trader.
By looking at the chart above we can see that gradually sellers start pushing prices down with a strength shown by the formation of lower highs.
Now it can be said that sellers are almost able to break the support level to continue its downward movement and even though this often happens.
However, in some cases it turns out that the support level is very difficult to penetrate and the sales trader does not have enough strength to penetrate it. So the price will bounce back and continue the movement with full force.
Knowing that this pattern exists, we can get good news that there will be a strong movement either up or down after consolidation. And in a case like this we will open a BUY position with an entry point above the support level and SELL with the entry below the lower high slash.
Well, it turns out that after the price touches the price support level it bounces upwards with the take profit target exceeding the height of the descending chart pattern. And if we open a BUY position above the support level then what will we certainly get? yes profit is OK OK!