How to Trade the Triangle Chart Pattern on Olymp Trade

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

In today’s post, we look at the triangle chart pattern on Olymp Trade. We discuss the most popular triangle patterns, how to identify them, and lastly, how to enter orders using patterns.

If you are a trend hunter, always looking for opportunities to capture trends as they are beginning to form, then this article is for you.

Why?

As it is, triangle chart patterns belong to the family of tools used to identify trend continuation.

What does that mean exactly?

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Well, these patterns, often formed mid-trends, signify the continuation of the trend they are formed on.

As a result, every time you see either of the patterns, you should be assured that the trend will be continuing in the main direction.

That said, there are three types of triangle chart pattern on Olymp Trade. And we will discuss all of them and how to draw them shortly.

But first:

What is the triangle chart pattern?

It is a pattern formed on the chart as a result of prices moving into a tighter and tighter zone as time progresses.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Such patterns signify an unending battle between the bulls and the bears, where each of the sides wishes to take control of the market direction but eventually, the trending direction wins.

How to draw triangle patterns

We mentioned that prices are forming a tighter pattern as the time moves. As such, to draw the triangle pattern, you just need to connect at least two highs and at least two lows.

To do that, just draw a line connecting the highs and another one connecting the lows.

Extrapolate both lines until they meet at some point.

The resulting shape should be a sort of a triangle.

Symmetrical triangle chart pattern.

 A symmetrical triangle pattern is formed when the market is making higher lows and lower highs.

When you draw two lines to connect these points (highs and lows), it comes together to form a triangle.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.
Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

When you see such a formation, it is telling you something.

What?

The symmetrical triangle pattern is a sign that as much as both bulls and bears are fighting, no one is winning. As a result, neither the bulls nor the bears succeed in creating a noticeable trend.

Symmetrical triangle in Olymp Trade

From the chart above, it is safe to conclude that the market is consolidating. As such, you don’t actually know where the market is going to move next.

But all we know is that as the two slopes get nearer and nearer to each other, a breakout is looming. Problem is, we don’t know it’s going to break out in what direction.

How to trade symmetrical triangle pattern

Even though we are blind as to where the market is going next, we can still make money out of it.

How?

You know for sure that the market is going to breakout. Therefore, you can place an order above and below the two trend lines.

And as soon as one is fulfilled, cancel the other.

Better yet, exercise patience. Wait for the breakout to occur before opening a position.

Ascending triangle

While the previous one is a consolidation pattern, the ascending triangle is a bullish pattern.

It is formed during an uptrend.

Triangle Chart Pattern on Olymp Trade

As you can see, the upper arm resembles a horizontal line used to mark resistance levels on the chart.

On the flip side, the lower arm looks more like a trend line.

The two lines come together to form an ascending triangle.

It depicts that the bulls are gaining strength. And that is why the prices are marking higher lows.

Where to enter a position

Just like the symmetrical triangle, ascending triangle signals impending breakout. And more often than not, the break out here is bullish.

For this reason, you should open a position after the breakout.

Descending triangle

As you guessed it, the descending triangle is the complete opposite of the ascending triangle. They are formed along with downtrend and often signifies a continuation of a bearish trend.

Triangle Chart Pattern on Olymp Trade

From the chart above, you can tell that the line connecting the highs is a trend line, while the one connecting the lows is horizontal.

Whenever you see such a pattern, you should expect the downtrend to continue.

Where to enter a trade on descending triangle

Just like the other previous triangle patterns, you should wait for the break out to occur, then open a sell position.

What to keep in mind when trading triangle chart patterns on Olymp Trade

There is no surefire way to tell the direction of the market. As such, don’t be surprised that either ascending or descending triangle is full of false signals.

It happens.

But there is a way out.

You can pair the triangle pattern on Olymp Trade with a trend following indicators like the MACD.

This way you should be able to tell a false signal from a real one.

For example:

During a breakout, the price should of course break any of the lines forming the triangle pattern. And to confirm this as a valid signal, the MACD lines should be diverging, indicating that a new trend is indeed forming.

Final thoughts on triangle charts

Don’t be so much engrossed on where the market is moving after break out. It is very much possible that the prices will go in the opposite direction.

Just to be safe, be ready for movements in any direction. And use indicators to confirm signals.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.


*Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.
 

Start Trading 

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Related Posts


The CCI Divergence Trading Strategy

Top 5 CCI Trading Strategies for Olymp Trade.

What is CCI? CCI stands for Commodity Channel Index. The Commodity Channel Index (CCI) is a technical indicator that compares the current price of an asset to the average price over a given number of ....

Aroon Signal Threshold.

Top 5 Aroon Trading Strategies for Olymp Trade.

What is the Aroon? Aroon is a technical indicator that shows trend changes in the price of an asset and the strength of the trend. It also gives bullish and bearish entry signals. In matters ....

The DeMarker-Price Action Strategy

Top 5 DeMarker Trading Strategies for Olymp Trade.

What is DeMarker? The DeMarker is a technical oscillator that measures the demand of an asset, usually abbreviated as DeM. It works by comparing the most recent high and low prices to the previous high ....

Bearish Signal confirmation

Top 5 MACD Trading Strategies for Olymp Trade.

What is MACD? Are you new to trading and are wondering what MACD is? MACD stands for the Moving Convergence Divergence. It is one of those trading tools that technical analysis traders use to identify ....

Stochastic-Channel Trading Strategy.

Top 5 Stochastic Trading Strategies for Olymp Trade.

What is Stochastic? Did you just begin your journey in trading, tried to flip open that trading platform, found the stochastic indicator, and are wondering what sort of thing Stochastic is? Stochastic is an oscillator ....

Bearish Harami reversal candlestick pattern

How to Trade the Harami Reversal Candlestick Pattern in 2021.

What is the Harami Reversal Candlestick Pattern? The Harami reversal candlestick pattern is a two-candlestick trend reversal setup. Harami in Japanese means ‘pregnant’. It takes this name because it resembles an expectant mother. The pattern ....

Runaway Gaps

How to Trade Runaway Gaps in Olymp Trade.

What are Market Gaps? Market gaps are areas where the price skipped and did not trade. A market trading upwards may skip an area on the chart and the next candlestick opens higher than the ....

Observe Price Swings.

How to Identify a Trending Market without Indicators.

What is a Trending Market? A trending market is one whose price shows sustained momentum towards a particular direction. If the price shows sustained momentum upwards, then the market is trending upwards. However, if the ....

Is $100 Enough to Start Trading Forex?

Is $100 Enough to Start Trading Forex?

If you are new to Forex and Fixed Time Trading then chances are you have wondered how much you need to start trading. Should you start with the minimum amount brokers allow as a minimum ....

Inside bar trading strategy

How to Make Money Trading the Inside Bar Strategy.

What is the Inside Bar? The Inside Bar is a candlestick whose whole dimension is contained within the dimension of a previous candlestick. It is a candlestick pattern that comprises first the mother candlestick, then ....

Pullback Trading

How to Trade Pullbacks in Olymp Trade like a Pro.

What are Pullbacks? To trade pullbacks on Olymp Trade like a pro, you must first understand what pullbacks are. Pullbacks, also called retracements, are periods of price correction before the primary trend resumes. The price ....

7 Best Trading Strategies for Volatile Markets.

7 Best Trading Strategies for Volatile Markets.

Volatile Markets are those markets where the price rises and falls rapidly and sharply. That means there are very fast and wide price fluctuations in the markets. Did you know that volatile markets present the ....

7 Best Trading Strategies for a Small Account.

7 Best Trading Strategies for a Small Account.

Do you have or intend to hold a small Forex or Fixed Time Trading Account? Are you wondering which strategies are suitable for a small account? Then you are in the right place. In today’s ....

7 Best Day Trading Strategies that Work.

7 Best Day Trading Strategies that Work.

If you are a day trader, you must be looking for day trading strategies that work. But your search from other sources must have always proven unfruitful. That might be the very reason you are ....

How to Make Money with Non-Directional Strategies

How to Make Money with Non-Directional Strategies

What are Non-Directional Strategies? Non-Directional Strategies are neutral strategies that are not based on the direction the market moves. Whether markets move up or move down, these strategies will generate profits. They are the complete ....

Forex Overlapping Fibonacci

Understanding the Forex Overlapping Fibonacci Trade Strategy

What is the Forex Overlapping Fibonacci Trade Strategy? The Forex Overlapping Fibonacci Trade Strategy is a forex trading strategy which utilizes the confluence of Fibonacci levels with other Fibonacci levels, support levels, resistance levels, pivot ....

Top fixed time trade strategies for Olymp Trade

Top Fixed Time Trade Strategies that Work in Olymp Trade

Top Fixed Time Trade Strategies that Work. Breakout Strategy. Gap Fill Strategy. Support and Resistance Strategy. Moving Average Strategy. 1. Breakout Strategy. This is one of the common forex trading strategies. Prices of assets move in ....

5 Best Trend Trading Strategies for Beginners.

5 Best Trend Trading Strategies for Beginners.

Did you just begin Forex Trading in Olymp Trade? Then chances are, you have traded with the naked eye, lost, and are now looking for best beginner forex trading strategies to improve your winnings.  And ....

Best Trading Strategies - How to Use Technical Indicators to Come up With Olymp Trade Trading Strategies.

5 Best Trading Strategies of 2020

Can I tell you one thing about trading strategies? They need continuous improvement. Market conditions are not rigid but fluctuate now and then. That calls for flexibility and adaptability on the part of the trader ....

Best Strategies for Olymp Trade FTT

7 Best Strategies for Olymp Trade FTT Trading

Imagine a captain sailing a ship without the compass direction and the map of the voyage, what do you think would happen?  Wouldn’t that be an aimless and almost impossible journey? Well, such is trading. ....

Read More
 
Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Comment on this post