Price pattern is a movement that is identified using a series of trendlines. When a price pattern signals a change in trend direction. It is call reversal pattern. A continuation pattern occurs, when the trend continues in its existing direction following a brief pause. Technical analysts have long used price patterns to examine current movements. It is forecast future market movements
Triangle pattern created when there is a significant movement in the stock. This Triangle is followed by a period of consolidation. Triangle creates the pennant shape due to the converging lines. A breakout movement then occurs in the same direction as the big stock move. The Triangle pattern are similar to flag patterns. And tend to last between one and three weeks. There will be significant volume at the initial stock movement. Followed by weaker volume in the pennant section. And growth in volume at the breakout.
This triangle usually appears during an upward trend. And is regarded as a continuation pattern. It is a bullish pattern. Sometimes it can be created as part of a reversal at the end of a downward trend. But more commonly it is a continuation. Ascending triangles are always bullish patterns whenever they occur.
The descending triangle is another continuation pattern. This triangle is a bearish pattern. Created as a continuation during a downward trend. It can be seen as a reversal during an upward trend. But it is considered to be a continuation.
It is easy to spot. Bullish pattern occurs by drawing trendlines. Which connect a series of peaks and troughs. The trendlines create a barrier. And once the price breaks through these. A very sharp movement in price follows.
Bearish Symmetric Triangle
The symmetrical triangle pattern is easy to spot. Bearish triangle pattern is created by drawing trendlines. It is connect a series of peaks and troughs. The trendlines create a barrier. Once the price breaks through these. It is usually followed by a very sharp movement in price.