Financial encyclopedia

The fluctuation range of prices in dense areas becomes narrower and narrower, and gradually loses elasticity. The trend line will form a triangle. When it enters the tip of the triangle, it means that the consolidation stage is over.

There are three forms of triangle:
Symmetrical triangle price is formed by two convergent trend lines with similar angles.
Ascending triangle
The price consists of a resistance horizontal trend line and a rising support trend line.
descending triangle
The price is formed by a horizontal support trend line and a downward resistance trend line.

Admission/exit trading opportunities:
When the price hits the top and falls back, it is an opportunity to sell.
When the price hits the bottom and rebounds, it is an opportunity to buy.
When the price breaks above the triangle, it is an opportunity to buy.
When the price breaks below the triangle, it is an opportunity to sell.

note:
The rising triangle most often appears on the way to the market, which is a favorable finishing form;
The falling triangle mostly appears on the way down, which belongs to the consolidation form of profit and light.

When you reach the tip of the rising triangle and make an upward breakthrough, it is the end of the finishing pattern, and you can enter the market immediately. The goal is the height of the triangle after the breakthrough.