3 Secrets That Will Bring You Success For Any Triangle Pattern
Not all triangle patterns are as powerful and reliable. In fact, triangle patterns often fail to deliver. However, there are 3 secret characteristics of those which are highly reliable. The profits that these triangles bring are usually massive, out-sizing the amount of risk.To get more news about WikiFX, you can visit wikifx official website.
Before diving in to the 3 secret characteristics, youll need to know how triangle chart patterns look like and the 2 most common types of triangles.
1. At least 4 swings (up and down)
1. Each peak is lower than the previous and each bottom higher than the previous
2. Prices and volume diminish as the pattern is formed
3. Prices and volume usually move sharply upon the breakout (only for a bullish breakout)
What Happens Inside The Triangles？
In a bullish triangle, the bulls and bears are having a massive fight. Initially, the bulls look to be winning, but the bears wont give up without a fight. As the bulls push prices up to a certain level, the bears step in, pushing prices down. The same cycle repeats, forming a triangle.
In a bearish triangle, the bears force prices down before the bulls wake up to push prices back up. This cycle repeats, forming a triangle.
3 Secret Characteristics
You have learnt how to identify and differentiate the 2 main types of triangles. You are ready to discover what the 3 secret characteristics are.
These 3 secret characteristics improve the reliability of the pattern:
1. The nearer the breakout occurs to the apex, the better
2. The more prices touch the lines, the better
3. Be wary if the volume is low during the bullish breakout