Figures of technical analysis Triangles - symmetrical and expanding

One of the most controversial graphical figures of technical analysis of the continuation of the trend on , are triangles. In fact, triangle shapes are similar in their construction to "Pennants." и "Flags."but without the initial upward/downward movement.

Symmetrical triangle technical analysis pattern trading signals

What is a symmetrical triangle and how is it formed? When the bulls and bears are in equilibrium in the market and volatility gradually fades, the price is "clamped" in a narrow range. Symmetrical triangle we can draw, having at least two points of lows and two points of highs in this tapering formation. As a rule, a symmetrical triangle pattern will look like two converging support and resistance lines.

After overcoming a narrow range and narrowing of the price chart there is a sharp break in any direction, more often it happens in the direction of the original trend, so the figure of technical analysis Symmetric triangle and called a figure of continuation of the trend.

In a regular figure Symmetric triangle the number of waves should not be even, as a rule, the waves are five or seven. At the last odd wave and there is a breakthrough symmetric triangle. After the breakthrough of the given pricing model price goes to a distance equal to the height of the base of the triangle.

Trading Signals of the Expanding Triangle Technical Analysis

Also in technical analysis there is such a figure as an expanding triangle. It is the same Symmetrical triangle, only its top (acute angle) is formed before the base. That is, the lines of support and resistance in such a triangle diverge.

An expanding triangle pattern is formed due to low volumes after the trend fades and a gradual increase in trading volumes as the expanding triangle is formed.

In technical analysis, the point of opening a position using the Expanding triangle pattern is a breakthrough from the support/resistance levels. After a triangle breakout, the price usually tests the support/resistance lines on the opposite side.

Example of an Expanding Triangle