When it comes to Forex trading, it is always about identifying the right pattern and opening the right position. Triangles can be considered as horizontal trading patterns. They are used to predict the sideways patterns of trades. Much like a triangle, they have a wide opening, two sides and continue to slope towards a single point.
The point where these two sides meet is what shows the trend of the market, and the shape of triangles also determines the future of the trade. You can get more info about forex trading in Nigeria via various online resources.
The analysis of the triangle shows the rate at which interest is being lost in a particular trade. There are three types of Triangles, and each bears its significance in forex trading:
The three types of triangle:
Ascending Triangle: In ascending triangle, the lines demand increased while the top line is a resistance line. It shows that the trade will show a growth of only up to this level and going out beyond the line has become difficult to predict.
Descending Triangle: In a descending triangle, the top side comprises low-top and the bottom is composed of rows. In most cases, the trade could fall further after breaking below the support line.
Symmetric Triangle: In a symmetrical triangle, the upper side consists of the highest low while the bottom side is composed of the high-low. the direction toward which points can also define the triangle accept trade support and its eventual price point. Using the triangle analysis to make entry and exit of the trade mark traders the ability to trade like a professional.