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Triangle

"Triangle" is among the algorithms frequently used in technical analysis. A triangle is formed by combining the peaks and troughs of price movements and drawing lines. The graph is interpreted according to the shape of the triangle formed. It is observed that the investors remain undecided, the balance between buying and selling transactions is dominant and the price movements are stuck in the drawn triangle. When the balance between buying and selling transactions is broken, that is, when the triangle is broken, sharp movements in the price are expected.
Triangle formations are grouped under three headings according to the shape of the triangle they form
Ascending Triangle
In this formation, while the peaks in prices are horizontal, each trough occurs above the previous trough. Buyers are stronger than sellers and accordingly an uptrend is observed. Two lines are drawn through the troughs and through the apexes. A triangle is formed when two lines connecting the troughs and apexes intersect. Price movements move towards the resistance zone where the peaks are formed. The formation is completed when the price movements break this resistance zone, that is, the upper edge of the triangle. With this breakout, an upward movement usually begins. For investors, this is considered a buy signal. While determining the price target of the ascending triangle formation, the height of the triangle is measured. The price is expected to increase by the height of the triangle.
Descending Triangle
We can say that this formation works in the opposite way of Ascending Triangle. In this formation, the lowest points in prices are horizontal, while each peak occurs below the previous peak. Sellers are stronger than buyers and accordingly a downtrend is observed. Two lines are drawn through the troughs and through the apexes. A triangle is formed when two lines connecting the troughs and apexes intersect. Price movements move towards the support zone where the bottom points are formed. The formation is completed when the price movements break this support zone, that is, the lower edge of the triangle. With this breakout, the downward movement usually begins. For traders, this is considered a sell signal. While determining the price target of the descending triangle formation, the height of the triangle is measured. The price is expected to drop as much as the height of the triangle.
Symmetrical Triangle
In this formation, each high is below the previous high, and each low is above the previous low. Two trend lines are drawn, passing through the lows and passing through the highs. When the rising and falling trend lines are combined, a symmetrical triangle shape is formed. It is not clear which direction the break will take here. Before breaking the symmetrical triangle, it is thought that the current trend will be in the same direction. So usually the breakout is in the direction of the trend. Prices are expected to fall or rise as much as the height at the widest point of the triangle formed.
​In order to easily obtain Triangle detections, you can create Alerts or Custom Signals through the Coinlegs system, and start autotrading bots on LegsBot by using the alerts you create.
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