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Analyzing the cryptocurrency markets can be quite difficult. However, by using trading strategies like triangle patterns, you can easily analyze the market and forecast the next move of the market prices. This gives you a perfect entry and exit points.

What are triangle patterns?

A triangle pattern is formed when the market seems to converge over a number of price swings. If you draw trend patterns connecting the lows and highs of at least two swings the pattern obtained should be a triangle.

The most important thing is identifying the triangle pattern after which you should identify which type of triangle pattern it is.

Types of triangle patterns

There are three types of triangle patterns that can form in any market chart. These include:

  1. Ascending Triangle Pattern
  2. Descending Triangle Pattern
  3. Symmetric Triangle Pattern

We shall look at how each of these patterns is identified and used to place trades.

Ascending Triangle Pattern

This pattern is formed when the market prices have found a resistance level and the lows of the swings tend to rise over the swings. This means that if you draw trendlines, the upper trend line will appear to be somehow straight (due to the resistance level) and the lower trendline will be inclined upwards.

Placing trades using the ascending triangle pattern

If you identify an ascending triangle pattern, you should prepare to sell.

Since the horizontal upper trendline shows that the market has hit a resistance, the most probable direction of the market to move is usually downwards.

You should therefore wait for the market prices to break the lower trendline (the one slanting upwards). After the prices break this trendline, you should wait for the first candlestick or bar to close and place your sell order after the second candlestick or bar.

Descending Triangle Pattern

This pattern is formed when the market prices have found a support level below and the highs of the swings tend to get lower over the swings. This means that if you draw trendlines, the lower trend line will appear to be somehow straight (due to the support level) and the upper trendline will be inclined downwards.

Placing trades using the descending triangle pattern

If you identify a descending triangle pattern, you should prepare to buy.

Since the horizontal lower trendline shows that the market has hit a support, the most probable direction of the market to move is usually upwards.

You should however wait for the market prices to break the upper trendline (the one slanting downwards). After the prices break this trendline, you should wait for the first candlestick or bar to close and place your sell order after the second candlestick or bar.

Symmetric Triangle Pattern

This triangle pattern is formed when the drawn trendlines seem to both incline towards each other.

This pattern forms when the market is not trending. And in this scenario the market can break on either side of the triangle.

So you should wait for it to breakout and place a trade depending on the side of the triangle that the market has broken out.

If it breakout on the upper side, then you should place a buy. If it breakout on the lower side, you should place a sell.


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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.
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