Triangle patterns

Ovaj post sam napisao za korisnika s Engleskog govornog područja, nadam se da ću uskoro naći vremena za prijevod.

 Triangles often form as uncertainty fills the market, and traders are unsure in which direction is market moving.

Triangle are continuation patterns, represent lines of supply and demand.

But modern technical analysis is not limited by this narrow description.

 There are three different  types of triangles, Ascending triangle, the Descending triangle and the Symmetrical triangle. 

Because of their similarities, we can add them, and growing or declining Wedge pattern.

Expanding Triangle is  reversal pattern.

If confirmed, the main application of the triangle pattern is  to give price targets.

The direction the trend is determined by the direction of breakout.

There are some basic validation rules.

1.The pattern  upper and lower sloping trendlines  must have  at least two points of confirmation.

2. Volume usually decreases as the pattern progresses and increases at the point of breakout, forming wide spread candle.

3. Market (Closing price) "must" respect the pattern.

4.Closing price above the trendline in a bullish pattern and below the trendline in bearish chart pattern. 

5.Strong pattern breake through the trend line in the first 2 / 3 of pattern.