Triangles

Module "Advanced Technical Analysis"

Triangles are another very interesting group of formations. As with rectangles, there are different types: ascending, descending and symmetrical triangles.

Symmetrical triangles are typical consolidation formations that often form after strong price movements. A clear signal is only possible after breaking out of the formation to the upside or downside.

In the case of rising triangles (bull triangles), the upper line of the triangle is a horizontal resistance line. A bullish triangle is generally positive. However, a buy signal is only given when the upper line is broken through.

Conversely, in falling triangles, the lower line is a support line. If this is breached, a strong sell signal is often given.