The difference between advanced traders and beginners in a bear market are their ability to use different strategies and be precise, using the 3 triangle pattern, and trading well against others. Without the necessary skills such as understanding the crypto market’s market structure and how to implement it, trading can be risky. This could endanger your life or your trading portfolio.
The crypto trading space is not just about buying and selling an asset. There are many other aspects to it. The ability to understand the market’s phases and cycles provides traders, investors and institutions with an edge to trade in a way that produces a high return on their investment over the long-term.
Let’s look at how most traders, investors, and institutions take advantage of 3 triangle patterns, especially in this bear market, to make profitable gains and stay ahead of the market and other traders.
What’s a Triangle Pattern?
Trader use the triangle pattern to find bullish continuations, or reversals depending on market conditions. The pattern consists of candlesticks formed within converging trendlines, known as resistance and support lines. These two trendlines create a triangle and are the reason for the name of this pattern.
These patterns can be used to identify a bearish or bullish continuation of the price movement. Most traders employ them in their trading because they have a high success rate.
Triangle patterns can be divided into ascending, decreasing, or symmetrical types. The chart will help you to understand them.
3 Triangle Patterns – Ascending Triangles
The resistance is followed by the support. To form an ascending triangle, there must be a top that acts as resistance and a bottom that is up-sloping. An ascending triangle is formed when the horizontal resistance meets the upward-sloping support at its apex. Price swings can occur in both directions; it could happen that prices break above horizontal resistance, or below upward-sloping support. If this happens, expect a bearish downtrend.
The downtrend in prices is the most common example of this triangle. The triangle is composed of a lower horizontal support, a falling trendline high that intersects with horizontal support. While price breakouts can occur in either direction (either bullish or bearish), most of the time prices move to the upside.
3 Triangle Patterns – Symmetrical Triangle
Symmetrical triangular price formations consist of support and resistor lines that converge and tilt towards each other. While the resistance line is at the top and the support line is at the bottom, it descends towards the top.
The 3 triangular patterns of crypto can help you to make better decisions about trading or investing in crypto assets.
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Featured Image from zipmex. Charts by Tradingview