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Triangles in Trading: How to Use Them and Not Get Caught 📈
Triangle in technical analysis? A powerful thing! It gives the trader several key insights into the market:
Here they are, our heroes - three types of triangles:
↗️ Bullish Triangle (also Ascending)
Look: there is a horizontal resistance line at the top, and support is creeping up from below. Classic! Usually, this indicates a continuation of growth. Or a reversal, if the market was falling. Interestingly, by 2025, the win rate of such patterns in the stock markets seems to have reached 75%. Impressive, right?
↘️ Bearish triangle (нисходящий, конечно)
Everything is the opposite! There is flat support at the bottom, and a downward sloping line at the top. Prices are making lower and lower highs. Support is weakening. A downward break seems inevitable. Backtests indicate that this pattern is especially good during periods of high volatility. A dangerous but profitable thing!
➡️ Symmetrical triangle
Riddle! There are no horizontals, both lines are inclined to each other at the same angle. It doesn't signal anything specific. Buyers and sellers seem to be frozen in equilibrium. Risks are increasing. It's not very clear where the price will go. In the current conditions, it's hard to figure this out without additional indicators.
How to trade smartly? Wait for a breakout on one side of the triangle with a candle. Then - testing. And only after that - into battle! A breakout usually indicates where the market will go next.
Caution! False signals occur all the time. It all depends on the time frame. On the number of candles after the breakout. Trading volumes, by the way, determine everything — without them, a breakout can turn out to be a fake.
Which triangle is closer to you?
👌🏻 - Bullish 🔥 - Bearish 👍 - Symmetrical