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PRICE ACTION TRADING | THREE TYPES OF TRIANGLES YOU MUST KNOW 📐

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Hey traders,

In this post, we will discuss 3 simple and profitable types of a triangle pattern.

1️⃣The first type of triangle is called a descending triangle.
It is a reversal price action pattern that quite accurately indicates the exhaustion of a bullish trend.

Setting a new higher high the market retraces and sets a higher low, then bulls start pushing again but are not able to retest a current high and instead the price sets a lower high and drops to the level of the last higher low setting an equal low.
The price keeps trading in such a manner setting lower highs and equal lows till the price sets a new lower low.
Most of the time it gives a very accurate signal of a coming bearish move.

Please, note that a triangle formation by itself does not give an accurate short signal. The trigger that you should wait for is a formation of a new lower low.

2️⃣The second type of triangle is called a symmetrical triangle.
It is a classic indecision pattern. It can be formed in a bullish, bearish trend, or sideways market.

The price action starts contracting within a narrowing range setting lower highs and higher lows.
Based on them, two trend lines can be drawn.

Breakout of one of the trend lines with a quite high probability indicates a future direction of the market.

3️⃣The third type of triangle is called an ascending triangle.
It is a reversal price action pattern that quite accurately indicates the exhaustion of a bearish trend.

Setting a new lower low the market retraces and sets a lower high, then bears start pushing again but are not able to retest a current low and instead the price sets a higher low and bounces to the level of the last lower high setting an equal high.
The price keeps trading in such a manner setting higher lows and equal highs till the price sets a new higher high.
Most of the time it gives a very accurate signal of a coming bullish move.

📍Please, note that a triangle formation by itself does not give an accurate long signal. The trigger that you should wait for is a formation of a new higher high.

Learn to recognize such triangles and you will see how accurate they are.

Let me know what pattern do you want to learn in the next post?

❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️

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