# figures technical analysis: The Triangle

figures technical analysis: The Triangle

For a technical analysis trader uses not only a variety of indicators, and chart patterns that stoyatsya on price charts.

Graphic model is constructed by means of support and resistance lines, the combination of which represents a figure of technical analysis (pattern). Using these figures, predict future behavior of the trend.

One of the figures on which define the continuation of the trend is a triangle (Triangle), in which the top line is the line resistance, and bottom - line support. Inside the triangle wave number must be odd (not less than five). If the top line in the triangle is horizontal (or a very slight slope) and the bottom line is rising with a pronounced slope, then the triangle is called an ascending (inside the triangle amplitude of price fluctuations is reduced). Ascending triangle indicates that the most likely pricing schedule will strike the upper limit (resistance line) and will go on (the trader is recommended to place the pending orders to buy above the resistance line).

If the bottom line in the triangle is horizontal (or a very slight slope) and the upper line is downward, with a pronounced slope, then the triangle is called top-down (inside the triangle amplitude of price fluctuations is reduced). Descending triangle indicates that the most likely pricing schedule will strike the lower boundary (support line) and will go on (the trader is recommended to place the pending orders to sell below the support line).

If the top line in the triangle is the descending and ascending lower (inside the triangle amplitude of price fluctuations decreases), then the triangle is called symmetric. He is considered a neutral model, but most often (but not always), he breaks out in the direction of the original trend.

With the expanding triangle trade is not recommended (as well as inside any triangle).

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