There is lots of trading pattern which helps us to predict the future movement of price. But, today we discuss triangle patterns in brief. Triangles are the common chart patterns that every trader should be aware of it. Triangles are generally formed when the price of the asset getting constricting to a certain range. Let's discuss the types of triangles patterns.
1. SYMMETRICAL TRIANGLE: Symmetrical triangle formed when the asset's price is constricting to a smaller and smaller area. Moving up price is not creating new high and rejecting the earlier high makes new low highs and the lows are making higher lows. Falling highs makes a downward trend line and rising lows makes an upward trend line.
2. ASCENDING TRIANGLE: Ascending triangle formed when lows are making higher lows but the highs are at the same level as earlier highs. Rising lows make an upward trend line but the highs which are at the same level forms a horizontal line which creates an ascending triangle.
3. DESCENDING TRIANGLE: Descending triangles are the reverse of ascending triangles. Descending triangles forms when highs are falling but lows are at the same level. Falling highs makes downward trend line and lows which are at the same level form a horizontal line which creates a descending triangle. Prices are constricting to a smaller area but it is reaching the same low price.
These are some basic triangle patterns which help the trader while trading. If you want to know more about all the chart patterns the IFM TRADING is one of the renowned institutes of Chandigarh which provides the full course of stock market from basic level to advance level which can help you to enhance your trading skills or this can be the base of your trading profession.