Forex technical pattern analysis: rising and falling triangles

## Ascending triangle

The ascending triangle consists of a resistance line and a rising dip line with a low point.

This time, buyers have always struggled to push the exchange rate to break through the resistance level, but they gradually pushed the price up, forming an upward sloping line in which the low point gradually increased.

As shown in the chart above, you can see that buyers are starting to accumulate energy because they are pushing the price lows higher. They continued to press the resistance level, and as a result, the breakthrough market was triggered at once.

Now, the question is, “Which direction will the price go? Is the buyer strong enough to push the exchange rate through the resistance line, or will the resistance line be strong enough?”

Judging from the patterns recorded in the past, in most cases, it is the buyer who wins the battle and the price will break through the resistance line to suppress.

However, from our past experience, this situation does not always occur. Sometimes, the resistance line is too strong, and the buyer does not have enough energy to push the price through the resistance line.

In most cases, the exchange rate will rise. What we want to tell you here is that you should not be too entangled in which direction the price will run, and you should be prepared for the price to run in either direction.

In this example, we will set our own stop loss orders above the resistance line and below the upslope.

In this example, the buyer eventually lost the battle with the air side, and the exchange rate also showed a tendency to retreat. You can see that the decline is approximately equal to the height of the ascending triangle pattern.

If we place an empty order below the upslope, we may realize some profit in the fall of the exchange rate.

## Descending triangle

You are probably thinking that the descending triangle pattern corresponds exactly to the ascending triangle pattern. (We know that you are all very smart!) In the descending triangle pattern, a series of high points that are continuously depressed form the upward slash of the pattern. The upper slash plays the role of a resistance line here, and the price is difficult to break through the resistance suppression of the upper slash.

As you can see in the picture above, you can see that the price is showing a trend of higher and lowering, which tells you that the seller is gradually gaining the upper hand in the game with the buyer.

For the vast majority of cases, please note that we are talking about the vast majority of cases where the price will eventually fall below the support line and continue to fall.

However, in some cases, the support line will be strong enough, the exchange rate will achieve a strong rebound after the line gains support, and eventually rise.

The good news is that we don’t care where the price will go. We just know that prices will fluctuate in a certain direction. In view of this, we can set our own stop loss orders above the lower slash and below the support line.

In this example, the price finally broke through the resistance of the downward slash. After the emergence of the upward breakthrough, the exchange rate showed a rapid upward trend, and the increase was almost equal to the height of the descending triangle.
If we set our own stop loss order above the downward slash and lock the target at a level that is highly consistent with the triangle pattern, we will get a good return.