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.
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
A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam.
Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Triangle Descending Triangle Trendline Ascending Triangle Speed Resistance Lines Andrew's Pitchfork Broadening Formation Breakdown Diamond Top Formation.
Ascending Triangle (Continuation) [ChartSchool]
Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.