Forex Videos

This is part 23 of the series. In this video we will look at Triangle chart patterns with examples. An Ascending Triangle pattern is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle one trendline is drawn horizontally at a level that has historically prevented the price from heading higher which is called resistance. The second trendline connects a series of increasing troughts. Traders enter into long positions when the price of the asset breaks above the top resistance. Traders enter into long positions when the price of the asset breaks above the top resistance. An Ascending triangle is usually considered a continuation pattern. Once the breakout occurs buyer will aggressively send the price of the asset higher.
The Descending triangle is a bearish chart pattern that is created by drawing one trendline that connects a series of lower highs and a second trendline that has historically proven to be a strong level of support. Traders watch for a move below support as it suggests that downward momentum is building. A Descending triangle is generally considered to be a continuation pattern. Once the breakout occurs traders enter into short positions and aggressively push the price of the asset lower.