The forex market, like the digital currency market, has a large volume of transactions every day. There are many more assets in the forex market than digital currencies, and it is also more widespread. Hence, traders deal with more models and patterns, and using them makes it easier to make money. Triangular patterns are one of the methods that are used both in the digital currency market and forex. Therefore, familiarity with Forex triangular patterns is very useful for traders. In this article, we are going to teach triangular patterns and introduce you to various types of triangular patterns.
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What is a triangular pattern?
Triangular patterns are one of the most useful trading patterns in the forex and digital currencies market. This pattern has different types which are divided into 3 categories: ascending, descending and symmetrical. Investors get good profit from the market by using forex triangle patterns, because the percentage of error is low. Of course, before entering the forex market, it is better to familiarize yourself with this market and learn the ways to earn money from it. Therefore, in order to earn dollars from the forex market, you must watch the videos of the global forex market intelligence course in order to achieve your significant profit in this market. These patterns are also known as technical triangle patterns because they are used in technical analysis.
Traders can easily plan their trading strategy using triangle patterns, because they get a general picture of the amount of error, risk and profit through these patterns. On the other hand, these patterns have a lower percentage of error than other patterns and methods, so it is worth learning. Candlesticks that exist between two areas of resistance and support and form a triangle. Traders can predict the downward and upward trend of the market through Forex triangle patterns.
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The formation of the triangle pattern in technical analysis
As you know, the triangular pattern in technical analysis should be created and recognized in the price chart. To recognize this type of patterns, they are generally placed in the upper part of the chart or the peaks and in the lower part of the chart or the valleys, and the shape of a triangle should move throughout the price chart. If this type of pattern is recognized, it happens when there is a balance between the low and high levels. Therefore, you should wait for a resistance break in the price trend.
The most common use of this pattern is to determine entry and exit points in the transaction. Also keep in mind that when drawing different patterns in technical analysis, you will usually see fluctuating behavior in the price. Therefore, according to these fluctuations, you can get a correct analysis of the situation.
A variety of triangular patterns
Technical triangle patterns are one of the easiest ways to earn dollars that most traders use. This method reveals the time to enter the market near the intersection of the levels, and a large number of candles in the areas before the break of the lines are also removed. Parable patterns are part of technical analysis topics, you can speed up your work and analysis using these patterns by using various tools. You can read the article 7 of the best technical analysis tools to get acquainted with useful tools to earn more profit.
Ascending Triangle Pattern
This pattern has a sloping or ascending side and a downward sloping side. An example of this pattern is given in the image below for you to understand it better. This pattern occurs when resistance breaks above and horizontal resistance breaks below. This happens approximately once every two months and can be cited as having two collisions with the body before each failure. As you can see in the figure below, the number of candles increases at the beginning and decreases at the end. Breakdown usually occurs in the third half of the triangle and takes more time to reach the goal.
Descending Triangle Pattern
Descending triangle indicates a downward trend in price and chart. As you can see in the figure below, the property has one side sloping down and one side with a constant slope. This pattern is also similar to the ascending or ascending triangular pattern, the number of candles is high at first and gradually decreases. At times when a breakout occurs, we see low volume of candles and then an increase. In this case, unlike the ascending triangle pattern that occurs before the intersection of the resistance and support lines, it can occur anywhere in the bearish state. For a better understanding of this pattern, see the image below to understand it better. Also, this pattern can be considered correct when it has at least two collisions with the upper and lower body of the triangle.
Symmetrical Triangle Pattern
Imagine a symmetrical triangle, this pattern looks exactly like a symmetrical triangle. The triangle pattern consists of two sloping lines, one of which is ascending and the other is descending. You can see the image below for a better understanding of this pattern. This pattern, like the previous two patterns, is more important the more collisions with the body of the triangle. Therefore, the best way to validate your model is to check the number of hits. As you have seen in the previous two models, the number of candles is high at first and gradually decreases; This pattern also follows this trend. Trading with the symmetrical triangle pattern brings the most profit for its user. Because when the market is in its down state, when the failure occurs, the trader can earn up to 15% profit from his trades.
How to trade with triangle patterns
The way to trade with these patterns is that you should pay a lot of attention to the two trend lines. So that when drawing the triangle, there should not be a lot of empty space in the triangle. Also, in order to better understand this model, it is better to have a good familiarity with the Flag and Wedge patterns. To get familiar with these two patterns, read the digital currency technical analysis training article to better understand the necessary patterns. You have to be a patient person to use these patterns, because the time period for the formation of these patterns is more than 30 to 60 days. Before making your trades, be very careful that it hits the body of the triangle at least twice before breaking. On the other hand, checking the volume and number of candles at the beginning and end is another important factor that should be taken into account.
Important tips for drawing triangular patterns
Usually, prices move up or down several times during a triangle pattern, in which case the main and most important position for drawing triangle patterns is patience. These ups and downs or price fluctuations should continue their trend until they are inside your triangle.
Of course, know that these types of triangles usually announce a short stop in the market trend, which indicates the continuation of the price trend. Finally, we must say that to draw the whole pattern, four points and two points are needed for each line in the price chart.
The market of digital currencies and forex are two of the largest markets in the world, where many people are busy earning dollars. But earning money in these two markets is a bit difficult without having basic knowledge about these two markets. Therefore, to get more information about digital currencies, read the digital currency training article. There are different patterns and methods to increase income and understand market trends. Among the patterns that many traders use is the triangle pattern. In this article, we tried to teach triangular patterns and introduce you to its types.