Let’s Peel Complete the Triangle Pattern for Beginners – Kuri007.com

Kuri007.com – Let’s Peel Complete the Triangle Pattern for Beginners. The triangle pattern is a pattern that has a high degree of accuracy. This article thoroughly covers all the basics about triangle patterns for beginners.

In market conditions that are in a strong trend, traders will find it easier to identify trends in the direction of price movements.

With market conditions like that, eventually a trader can also more easily decide whether to open a buy or sell position.

When the price is in an uptrend, the profit potential from long positions tends to be greater. While in a downtrend, selling positions will be more profitable than buying positions.

However, what if the market conditions are sideways or consolidation? Of course this will make it difficult for traders to make buy or sell decisions.

One of the suggestions can be done by trading using a triangle pattern. This pattern is one of the most well-known chart patterns among professional traders.

If you can recognize them, then these patterns will help observe price action in the market. What is the triangle pattern and how to use it? This article will really explore the triangle pattern for beginners.

Recognize the Triangle Pattern

Triangle patterns are formed by connecting the lines of a currency pair with support or resistance points. At the beginning of its formation.

The triangle pattern is formed from a wide price range, then the price range narrows and creates dots which, when connected, form a triangle.

On the display on the Price chart, the lower line that forms a triangle pattern will represent support, while the upper line will represent resistance. The breakdown of the two lines will determine what position is most appropriate for you to open.

If the price breaks the pattern’s upper line or resistance, then the most appropriate position is to buy or buy.

Conversely, a breakout of the bottom line or triangle support pattern is a signal to open a sell position. Then how is the basis for using it?

Basic Ways to Use the Triangle Pattern

Before getting into how to use the triangle pattern, it’s good to know some of the types of this pattern. Basically, the triangle pattern consists of 3 types, namely the symmetrical triangle pattern, the rising triangle pattern, and the descending triangle pattern.

These three types actually have the same method of use, namely breakout trading. However, the identification of the three patterns is certainly different. Below are examples of identifying and basic ways of using each pattern.

Symmetrical Triangle Pattern

The symmetrical triangle pattern is a price formation that is formed from slope lines of several high and low levels, then meet at a point so that the pattern resembles an equilateral or symmetrical triangle.

In this pattern, the price seems to move to form lower highs and higher lows.

In this case, the market appears to be consolidating as buyers buy at a higher price and sellers sell at a lower price.

When two slope lines almost meet, the direction of price movement will immediately break out or penetrate one of these lines.

In this pattern, you cannot immediately determine the exact direction of the breakout. Then how to get the benefits?

You can take advantage of opening a position using a pending buy stop order placed above the high level slope line, and a pending sell stop order below the low level slope line.

Bullish Triangle Pattern

The ascending triangle pattern is a triangular formation consisting of a strong resistance level and a Slope Line from several low levels, then meet at a point so that the pattern resembles a triangle.

In this formation, the price appears to be making higher lows near a strong resistance line.

This formation is formed because the seller sticks to a certain selling price, while the buyer buys at a higher price until it finally approaches the seller’s price.

When the buyer’s price is almost equal to the seller’s price, the direction of the price movement will immediately break out or penetrate one of the lines that forms the ascending triangle pattern.

Usually, the price that forms this pattern will tend to move through the resistance level. But in some cases, the price can still reverse and break the upward sloping support line.

Pola Descending Triangle

This is the opposite of the ascending triangle pattern, in that it is a triangle formation consisting of a strong horizontal support line and a Slope Line several levels high, which then converge at a point to form a triangle.

In this formation, the price will form a lower high to approach the support line. This indicates that the sell price is moving down, while the buy price remains at a certain level.

When the seller’s price is almost equal to the buyer’s price, the direction of the price movement will immediately break out or penetrate one of the lines that forms the descending triangle pattern.

Usually, the price that forms this pattern will tend to move through the support level. But in some cases, the price can still reverse and break the downward sloping resistance line.