Graphic model of the "triangle" is actively used in all financial markets and Forex Currency Exchange is no exception. The most appropriate use of this figure is in times of confrontation bullish and bearish trends. At such moments, the charts can not determine the direction of further movement, which is why the model is a figure of uncertainty.
Trader who wants to construct a triangle must be found in the chart 4 points. One trend line have to pass through two maxima, and the other - the two lows.
Classification:
1. Ascending triangle. Trendlines form the top of the figure upward. It is noteworthy that the upper resistance line for the price of a horizontal or almost invisibly directed towards the peak. Price breakdown of a figure, usually growing. However, in this case it is possible and the movement in the opposite direction, such a course is possible after a broken lower resistance level.
2. Descending triangle - the top of the geometric model, drawing upon its trend clearly points in the direction of the X axis in the coordinate system that is down. Resistance line drawn through the lows of the figure, has a horizontal position or a slight downward angle. Most of breakdown of such figures is precisely in the direction of the top of the slope, however, exceptions to this rule sometimes happen.
3. Symmetrical Triangle. It is also called horizontal. Trends of the figure usually tend to its center. Line break resistance usually occurs in the direction of the trend, which preceded the formation of the symmetric graphical model.
4. Classification provides for the presence of the fourth - the expanding triangle . This voluminous and interesting topic to be discussed in a separate article.
When it is best to enter the market and whether the best way to be placed orders with the use of this chart pattern?
The best time to enter the market experts call time breaking the trend - perfect if it is shutting down the candle. Good entry point will retest the trend lines.
Exhibit should take-profit, focusing on the widest part of the figure, postponed from the breakout trend line. Stop losses safest place for the opposite boundaries of the model.
When using this graphical model, remember that not all of the triangles after breaking the resistance line necessarily reach the projected take-profit. Movement in the opposite direction in this case is not such a rarity. So the hard money management and impartially triggered stop-loss above all!