Triangles/Wedges These types of patterns develop as a result of contracting volatility which portend price expansion upon breakout. There are three types – symmetrical, ascending, and descending. Symmetrical triangles are the most neutral of the three variations as higher lows and lower highs converge towards the apex of the formation. If they develop early in a trend they tend to act more as an indication of pending continuation of the trend prior to development, however; ...
Webinar: The Success and Failure of Chart Patterns ====== Suri Duddella, 19+ years full-time Futures/Equities/Options Trader. Patterns based Algorithmic Trading. Author -- "Trade Chart Patterns Like The Pros" book. ====== Chart Pattern ModelingEssential pattern structure components and analysisPractical statistics of patterns success and failuresExamples of many patterns ...
Gold has been consolidating in a descending triangle this week after it found resistance at about 1322. Note the bullish bias in the 1H chart. 1) Price was bullish at the end of last week, so the prevailing trend in the 1H chart is bullish before it consolidated this week. 2) Price is for the most part trying to stay above the 200-, 100-, and 50-hour simple moving averages, which would reflect a bullish market. 3) Price broke above the descending triangle resistance today. ...
Talking Points: The AUDUSD is trading in an ascending triangleWith the absence of a new high, traders can wait for a breakoutThe triangle low and high can be used to extrapolate price targets At some point, market trends will come to an end. These market transitions can be difficult for those that are used to using a directional market to make trading decisions. These market conditions don’t have to spell disaster for traders however. Those traders that can properly ...
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