What are the model of «triangle»?
Recognition model allows traders to observe the behavior of investors through price activity. One of the most important models, which provide profitable opportunities for trade - this triangle. Triangles are very horizontal trading patterns (or models continue) is a period during which the market takes a pause before continuing their ascending or descending trend.
Given that the current trend is stopped, the triangles in the general case can signal when the trend is going to resume. In early models, the triangle is at its widest spot. As the currency continues to be traded in the range, the model is shrinking, creating a full triangle. Once the model of «triangle» is completed, the result will often be a sharp movement in the other side, which occurred on the way out of the model.
Different types of triangles
Models «triangle» formed of upper and lower trend line is the boundary model. There are three basic types of triangles - symmetrical, ascending and descending.
The main category of models of «triangle» symmetrical triangles are formed by ascending and descending trend lines. These converging lines formed a limited range. In general, the symmetrical triangle indicates that the current trend remains in force. Therefore, the breakthrough, which occurs after the formation of a triangle, usually in the direction of the current trend. To predict when a breakthrough will occur, traders can measure the width of a formed model «triangle». When the width is narrowed down to 30-60% of the most extensive place, then, in general, is ready to be a breakthrough.
In addition to the symmetrical, triangles can also be dating back or descendants. Rising triangles can be identified on a flat top line and bottom line of a rising trend on all the higher minimums. Generally, ascending triangle signals the breakthrough to the upper side. Instead, top-down triangles include a flat bottom line and top line downward trend and signals the breakthrough of the bottom side. Timing of the possible breakthrough of triangles is performed in exactly the same as for the symmetrical triangle.
How to use the model of «triangle»
The most common trading strategy using the model of «triangle» is to establish a point of entry into the market above or below the trend line, which is the triangle. In the case of a symmetrical triangle in the current upward trend, the ideal entry point would be above the upper trend line to catch, followed after a breakthrough, the movement upwards. For the downward trend - on the contrary.
Recognition model allows traders to observe the behavior of investors through price activity. One of the most important models, which provide profitable opportunities for trade - this triangle. Triangles are very horizontal trading patterns (or models continue) is a period during which the market takes a pause before continuing their ascending or descending trend.
Given that the current trend is stopped, the triangles in the general case can signal when the trend is going to resume. In early models, the triangle is at its widest spot. As the currency continues to be traded in the range, the model is shrinking, creating a full triangle. Once the model of «triangle» is completed, the result will often be a sharp movement in the other side, which occurred on the way out of the model.
Different types of triangles
Models «triangle» formed of upper and lower trend line is the boundary model. There are three basic types of triangles - symmetrical, ascending and descending.
The main category of models of «triangle» symmetrical triangles are formed by ascending and descending trend lines. These converging lines formed a limited range. In general, the symmetrical triangle indicates that the current trend remains in force. Therefore, the breakthrough, which occurs after the formation of a triangle, usually in the direction of the current trend. To predict when a breakthrough will occur, traders can measure the width of a formed model «triangle». When the width is narrowed down to 30-60% of the most extensive place, then, in general, is ready to be a breakthrough.
In addition to the symmetrical, triangles can also be dating back or descendants. Rising triangles can be identified on a flat top line and bottom line of a rising trend on all the higher minimums. Generally, ascending triangle signals the breakthrough to the upper side. Instead, top-down triangles include a flat bottom line and top line downward trend and signals the breakthrough of the bottom side. Timing of the possible breakthrough of triangles is performed in exactly the same as for the symmetrical triangle.
How to use the model of «triangle»
The most common trading strategy using the model of «triangle» is to establish a point of entry into the market above or below the trend line, which is the triangle. In the case of a symmetrical triangle in the current upward trend, the ideal entry point would be above the upper trend line to catch, followed after a breakthrough, the movement upwards. For the downward trend - on the contrary.
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