The triangle pattern is a graphical pattern that appears on the asset price chart and is characterized by the formation of a triangular shape. It can be either ascending (the vertex of the triangle is directed upwards) or descending (the vertex of the triangle is directed downwards).
In trading, the Triangle pattern is used to determine the possible development of a trend and predict future price movements. It signals a period of volatility compression when the asset price forms lower peaks and higher bottoms (in the case of an ascending triangle) or higher peaks and lower bottoms (in the case of a descending triangle).
Trading strategies based on the Triangle pattern may include entering a position when the upper or lower boundary of the triangle is broken, as well as using stop losses and profit-takes based on the width of the triangle.
However, it is important to keep in mind that the Triangle pattern requires confirmation by other indicators and analytical tools to make sure of its significance. It is also necessary to manage risks and develop a trading plan for the effective use of this pattern.
