Continuation Technical Patterns - Other Triangles

1. what are the other triangles?

Triangle is the most common technical pattern. Except for ascending triangle and descending triangle, there is the bottom triangle, spreading triangle (in trumpet shape), and convergent triangle, which we collectively refer to as other triangles.

• Bottom triangle

• Spreading triangle

• Convergent triangle

2. How to identify other triangles

1. Other triangle patterns may appear in either the rising or falling market.

1. When using triangles to predict the market trend, we should be flexible and consider the current situation. The meaning of the pattern may vary depending on actual market conditions, so don’t be too mechanical.

   3. What are the other triangles?

The three triangles form as a result of the struggle between the long and short. It is hard to predict the rise or fall until the border of the triangle is crossed. How the triangle is pieced, i.e. whether its top or bottom is pieced, determines whether you should go long or short: If the top is pieced, go long; if the bottom is breached, go short.

4. Application

1. When the price line goes up to break the top of the triangle and ends positively, the coin looks up and it is suggested to go long:

1. When the coin price drops to break the bottom of the triangle and closes negatively, the coin looks down and investors should sell to go short:

5. Application in trading

1. In the picture below, the coin price broke the top of the triangle:

The picture depicts the daily chart of Gate.io contract BTC. From April 29, 2020, to July 27, 2020. Since March 2020, BTC had grown strongly after rebounding from a low of around $5,000 and went up all the way to break $10,000 on June 11, 2020. Then the buoyance came to a hold. The price started to fluctuate in the high, and a standard convergent triangle appeared. On July 21, 2020, the price soared to cross the upper line of the convergent triangle, reaching $9,500, and then set to rally.

1. In the picture below, the coin price broke the bottom of the triangle:

The picture above depicts the daily chart of Gate.io contract BTC. From January 23, 2021, to May 1, 2021, BTC fell all the way from a high of $66,000 to $35,000, and then fluctuated between $35,000 and $47,000, and a convergent triangle appeared. As the long and short forces were balanced out, the price went down all the way to $37,000, where the button of the triangle was crossed and declined sharply thereafter.

6. Summary

It should be noted that the triangle is merely a means to help you predict the possible market trend, and the facts can be different from what the triangle tells you. Use other technical methods together to have a better prediction, and think carefully before making an investment decision.

After the triangle loses shape, whether the price of the coin rises or falls depends on which side the triangle is crossed. It has no relevance to the shape of the triangle or its position in the chart.

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Disclaimer

This article is for informational purposes only and does not constitute any investment advice, nor is Gate.io responsible for any of your investments. Content related to technical analysis, market judgment, trading skills, and traders’ sharing cannot be used on an investment basis. Investment may involve potential risks and face uncertainties. This article does not contain or imply any guarantee for returns on any type of investment.