Expanding triangle as expanding formation is established chart patterns technical analysis in forex trading. The use of these figures allows the most accurate forecasts of price movements in the currency market.
Expanding triangle appears only in uncertain situations. At the same trend lines drawn on his upper and lower peaks, do not converge as the majority of the triangles, and diverge.
The appearance of the figures in the chart quotes are rare, however, to be able to recognize it is important to take the only right decision in the circumstances and make a profit or minimize the risks.
Formed expanding graphical model to the standard scheme, with four data points. Two trend lines are drawn along two highs and two lows, as well as in other similar patterns . And at this figure could be much more in common, but at least 4.
It is noteworthy that the lines of expanding triangle with respect to the coordinate axes X are the same angle. Line figures converge and form an angle directed towards the opposite to the motion graphics. It is important to remember that the expanding triangle is considered as such only if inside each successive maxima above the previous, and each following minimum decreases relative to the preceding one.
In some cases, the expanding triangle can be smoothly transformed into a symmetrical, as a result we can see on the chart the emergence of a pattern with the beautiful name "diamond".
In the contentious issue of the differences of the expanding triangle and a similar formation to traders disagree. In his own right by those who see these models is different, however, and point of view about the similarity of tactics when these two graphic figures also have the right to life.
Determine the appearance of inflationary models in the chart can only be experienced trader, but even if it did, to trade within this pattern is extremely difficult and uncomfortable. Recommendations on the best time to enter the market to be extremely difficult. Luck may smile as the trader after the breakdown of one of the trend line, and within the figure.
However, if careful, do not forget the money management basics and intelligently arrange stops, then get out of any, even the most difficult market conditions can not only with minimal risk, honor, and with a profit.