What separates advanced and novice traders during a bear market is the variety of strategies, accuracy, use of the common 3 triangle pattern, and managing the trade for a fair edge against other crypto traders. Trading without the proper skills, such as the market structure of the crypto market and applying your strategy, is tantamount to exposing yourself to risk that could cost you your life, but in this case, your trading portfolio. .
There is a lot involved in trading in the crypto space apart from buying and selling based on the sentiment that this is the best time to buy or sell an asset. Understanding the market in phases or cycles gives traders, investors and institutions the advantage of trading with the necessary edge and technical tools needed to deliver great Return on Investment (ROI) over time.
Let’s see how most traders, investors and institutions take advantage of the 3 triangle pattern, especially in this bear market, to make profitable profits and stay ahead of the market and other traders.
what is triangle pattern
The triangle pattern is a technical analysis chart formation used by traders to spot bullish continuations or reversals based on market conditions. This pattern involves the formation of engaging candlesticks in converging trendlines known as support and resistance lines. The two converging trendlines form a triangle, hence the name pattern formation.
These patterns are very useful for spotting bullish or bearish continuation of prices, and because of their high probability success rates, most traders use them during their trading.
The 3 common types of triangle patterns are ascending, descending and symmetrical triangle patterns; Let us discuss them with the help of charts.
3 Triangle Pattern – Ascending Triangle
An ascending triangle is formed when a top acts as resistance and is followed by an upward sloping bottom called a support. When the horizontal resistance line meets with the upward-sloping support at the top of the price, an ascending triangle is formed. Prices can break out in any direction; This can be a breakout above horizontal resistance or a breakout below up-sloping support leading to a bearish downtrend.
This triangle is mostly seen as a squeeze in a triangle in case of price decline. This triangle is made up of a lower horizontal support and a falling trendline top which converges with the horizontal support to form this pattern. Price can break out in any direction causing the market to turn bearish or bullish, but in most cases, prices break out of this triangle upwards.
3 Triangle Pattern – Symmetrical Triangle
symmetrical triangle They are price structures in which the support and resistance lines are inclined and converge on each other. The resistance line descends from the top, while the support line rises from the bottom.
Identifying the 3 triangle pattern in crypto will help you make a sound and smart decision about trading and investing in crypto assets.
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Featured Image From zipmex, Charts From Tradingview