Triangle is a classic price action pattern that is applied by technical analysts to make predictions trading different financial markets.
Depending on the shape of the triangle, there are three main variations of this pattern.
Its meaning changes dramatically from one to another so it is crucially important for you to know the difference.
👉 The symmetrical triangle is determined by two contracting .
The pattern is considered to be indecisive meaning that while the market is stuck within, the directional bias is unknown.
Only the breakout of a boundary of a triangle clarifies the future direction.
👉 In contrast, the (also called a accumulation) is a classic example of a biased pattern.
With a horizontal serving as resistance and a rising service as support, the market is accumulating volumes for a breakout.
Once the horizontal resistance is broken, continuation follows.
👉 The is a biased pattern. Also called a accumulation, the pattern indicates the preparation of the market participants to set a new low after consolidation and contraction within a triangle.
Once the horizontal support is broken, continuation follows.
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