3 Forex triangle patterns
Triangles can be used in Forex trading to predict the direction of the price or trend. There are three types of triangles that you can use.
Types of triangles
- Ascending triangle
- Descending triangle
- Symmetrical triangle
The ascending triangle is characterized by higher lows while the highs remain at the same level. The higher lows indicate that the buyers are gaining the upper hand increasingly faster: the probability of a strong upward movement is therefore high.
In a declining triangle lower highs are set while the lows remain at the same level. The lower highs indicate that sellers are gaining the upper hand increasingly faster: the probability of a downward breakout followed by a sharply declining price is therefore high.
Within a symmetric triangle both the highs and the lows are getting closer to each other. In that case it is most likely that the price will continue to move in the direction of the current trend. The price movement after a symmetrical triangle is often very strong and sharp.