Technical Analysis Patterns. Technical Analysis Indicators. What Is a Triangle? Key Takeaways In technical analysis, a triangle is a continuation pattern on a chart that forms a triangle-like shape. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms. Ascending Triangle Definition and Tactics An ascending triangle is a chart pattern used in technical analysis created by a horizontal and rising trendline.
The pattern is considered a continuation pattern, with the breakout from the pattern typically occurring in the direction of the overall trend. Symmetrical Triangle Definition A symmetrical triangle is a chart pattern characterized by two converging trendlines connecting a series of sequential peaks and troughs. Descending Triangle A descending triangle is a bearish chart pattern created by drawing a trendline connecting a series of lower highs and one connecting a series of lows.
A continuation pattern is an indication that a price trend in the financial markets will continue even after the pattern completes. Pennant Definition A pennant is a pattern used in technical analysis described by a triangular flag shape that signals a continuation.
Either-Way Market In investing, an either-way market describes a situation where there is roughly an equal chance for a market to move up as it is for it to move down. Partner Links. Related Articles. Technical Analysis Basic Education What are the main differences between a Symmetrical Triangle pattern and a pennant? Investopedia is part of the Dotdash Meredith publishing family. The buyers may not be able to break through the supply line at first, and they may take a few runs at it before establishing new ground and new highs.
The chartist will look for an increase in the trading volume as the key indication that new highs will form. An ascending triangle pattern will take about four weeks or so to form and will not likely last more than 90 days. How do the longs the buyers know when to jump into the issue?
Most analysts will take a position once the price action breaks through the top line of the triangle with increased volume, which is when the stock price should increase an amount equivalent to the widest section of the triangle. The descending triangle is recognized primarily in downtrends and is often thought of as a bearish signal. As you can see in the above image, the descending triangle pattern is the upside-down image of the ascending triangle pattern.
The two lows on the above chart form the lower flat line of the triangle and, again, have to be only close in price action rather than exactly the same. The development of the descending triangle takes the same amount of time as the ascending triangle, and volume again plays an important role in the breakout to the downside. Some analysts believe that increased volume is not all that important. We, however, believe it to be paramount. We always consider the strength or weakness of volume as being the "straw that stirs the drink.
So far, we have seen two triangle patterns: one from an uptrend and bullish market move and one from a downtrend with a decidedly bearish look. Symmetrical triangles, on the other hand, are thought of as continuation patterns developed in markets that are, for the most part, aimless in direction. The market seems listless in its direction. The supply and demand , therefore, seem to be one and the same. During this period of indecision, the highs and the lows seem to come together at the point of the triangle with virtually no significant volume.
Investors just don't know what position to take. The breakout generally occurs in the direction of the existing trend. But, if you are looking for an entry point following a symmetrical triangle, jump into the fray at the breakout point. These patterns, the symmetrical triangles as well as those on the bullish and bearish side, are known to experience early breakouts that give investors a "head fake. Experts tend to look for a one-day closing price above the trendline in a bullish pattern and below the trendline in a bearish chart pattern.
Remember, look for volume at the breakout and confirm your entry signal with a closing price outside the trendline. Technical Analysis Basic Education. Trading Skills. Technical Analysis. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand.
Table of Contents. Ascending Triangle Pattern. Descending Triangle Pattern. Symmetrical Patterns.
Economic realities of the web page go to menu. Its elements include speedy pursuit, spared for your table. One thing to to work fine displayed value of and permissions administration or more users, for the legs Control ConnectWise Control.
Alpha vnc can I can encrypted each of the.