Stock market triangle pattern

Stock market triangle pattern

Posted: miftahovn Date: 17.07.2017

A chart pattern used in technical analysis that is easily recognized by the distinct shape created by two converging trendlines. The pattern is identified by drawing two trendlines that connect a series of sequentially lower peaks and a series of sequentially higher troughs.

Both trendlines act as barriers that prevent the price from heading higher or lower, but once the price breaches one of these levels, a sharp movement often follows.

Lesson 2 -All what you need to know about Triangle Pattern.

A symmetrical triangle is generally regarded as a period of consolidation before the price moves beyond one of the identified trendlines. A break below the lower trendline is used by technical traders to signal a move lower, while a break above the upper trendline signals the beginning of a move upward.

stock market triangle pattern

As you can see from the chart above, technical traders use a sharp increase in volume or any other available technical indicator to confirm a breakout beyond one of the trendlines. The sharp price movement that often follows a breakout of this formation can be captured by traders who are able to identify the pattern early enough. Dictionary Term Of The Day.

Bulkowski's Stock Market Research

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Ascending Triangle (Continuation) [ChartSchool]

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