Triangle

Triangle

How to analyze symmetrical, ascending and descending triangles:

• Classic triangle has five lines (three downward and two upward or vice versa);
• If the price penetrates the triangle downwards then the price may continue to fall;
• If the price penetrates the triangle upwards the price may continue to rise;
• If the pattern angle is up-directed the price may move higher;
• If the pattern angle is down-directed the price may move lower;
• If prices remain within the triangle beyond the three-quarter point, the triangle begins to lose its potency, and prices may continue to drift out to the apex and beyond;
• The breakout usually occurs between 1/2 and 3/4;
• Triangle top will be the support/resistance level;
• Typically, volume is heavy at the beginning and it contracts during the formation of a triangle. It increases again after the breakout;
• The price continues moving in the direction of the breakout for at least a range equal to the triangle's height.

Flag

The pattern consists of two parts. Ideally flagpole is formed by one or two large bars. The flag is formed as a wavy corrective movement. If support / resistance lines are drawn between the tops and bottoms of this correction the picture will be very like a flag. It is usually broken out in the direction of the previous trend. The target is the height of the flagpole from the breakout point.

Pennant

The pennant resembles a small symmetrical triangle.

Wedge

Фигура похожа на треугольник. Отличие в том , что линии ограничивающие фигуру направлены в одну сторону, но под разными углами. Фигура часто образуется на коррективных движениях и прорыв происходит в сторону обратную наклону фигуры, т. е. в сторону основной тенденции. В случае образования фигуры против тенденции, то пробитие может означать разворот тренда.

Rectangles

The pattern is like a triangle. The difference is that the direction of the lines which restrict the pattern is the same but they are at different angles. Often the pattern is formed on the corrective movement and the direction of the breakout is opposite to the pattern skewing, that is it is in the direction of the main trend. In case the pattern forms against the trend the breakout may signal trend reverse.