Forex Chart pattern (Part 2)

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Today we'll talk about the remaining triangles of the chart patterns. Buckle up and keep your mind open to the incoming knowledge.

Now there are specific variations of triangles that can occur, namely ascending and descending. An ascending triangle has a horizontal resistance line and a descending angle. A descending triangle has a horizontal support line. Remember: one price is moving up. This would be your resistance line, and this would be your support line. One price moving down. This is your resistance line, so, as you notice in a downtrend to form the triangle, you are in an uptrend. You have the horizontal line here to support the channel with the development of the triangle. Now an ascending triangle usually occurs as a continuation of a bullish trend. While a descending triangle usually occurs as a continuation of a bearish trend. So here we have an uptrend, slight uptrend support. Underneath the uptrend line, horizontal support line defending triangle price, moving down support line ascending triangle - we have both of them moving in together. So basically, an ascending triangle has an angular support line and an angular trend line.

It's important to note that an ascending triangle can also be found in a downtrend. The combination of the name of the triangle and the market trend is deceiving. Thus, the financial asset needs to test the resistance line twice and test the resistance level twice, and the asset closing price needs to be higher than the previous closing price. In other words, the closing price has to follow the rising trend line. When you have the trendline to actually be a triangle, because you see these shapes forming, but they don't fit the rules. And if you don't follow the rules, you're just blindly trading some format. So let's go through this again. In an ascending triangle, the trend is seen. The financial entities had a test the resistance line when price bounced up to this resistance line, bounce off of it at least twice. And the closing price needs to be higher than the previous close. So not only does it need to bounce up and test the resistance line, it needs to close higher in the following timeframe than it did in the previous time break. The closing price has to follow the rising trend. So you need twice it to test the resistance line and that the actual centre of the triangle, when you're forced in here, will fit those rules that the close has to be higher than the previous close. So once you have it testing this resistance line twice, and then the close is. This is higher than the previous close. You now have the final formation of your actual triangle. When we come to volume when in a spending trial, volume usually contracts. However, there are a few numbers in cases that show volume has not contracted volume, is the number of shares or contracts being traded in a specific time?

There's a relationship between the trend and volume when the trend moves in a specific direction, and volume stays Salvetti. It supports the trend if volume increases while the trend is happening, which means more and more traders are jumping into the market and supporting that trend. When volume contracts, it's telling you that the traders are getting indecisive when you're getting into the wedge of a triangle, the centre of a triangle. You should be getting this drop in volume because the traders aren't sure where this is going to be. So now you have three pieces of information to determine your triangle, so the distance between the rising trend line and the resistance will Give us our projection because this will give us a projection of where we can expect Christ to move. So at this point, if we get to breakout okay, this breakout should be equal in the distance of the third side of the triangle. So for resistance level had a level of 1, and our trend line had a level of 0.5. Then our projected value would be 1.5, so we're expecting a 1.5 or an equal distance to what the width of this triangle was in an upward movement. If it's a breakout up because, from an ascending triangle, we are looking for it to regain its traction on the trend line, you're not looking to trade going down because you're not looking to trade against the trend. 

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