Most investors who are keen on cryptocurrencies try to take positions according to the opinions of technical analysis experts because they are not knowledgeable in technical analysis. Sometimes it causes the right investment and sometimes the wrong investment.

So what do we need to do to make minimum mistakes… ?

What we need to do is to confirm the accuracy of what technical analysts say. It is simply necessary to know the patterns of technical analysis. I'm going to tell you how to simply read a price chart without being a technical analyst...

In this article, I'm going to talk about a number of technical analysis formats...

Fear not, there are no technical terms, it will be in the way a casual investor will understand...

If you're ready, let's start …

Our fourth technical analysis pattern; Triangle Pattern …

Triangle patterns on the chart when the price of a cryptocurrency becomes increasingly tight. There are three different patterns that qualify as triangle patterns. These are descending, ascending and symmetrical formations.

As a feature of Triangle Patterns, it cannot predict the direction the price will go. But after the price breaks the triangle, it easily shows its direction.

Triangle Pattern tells us that the volatility of the cryptocurrency price is squeezed into a narrow area. This shows on the chart how tight the struggle between buying and selling is.

Triangle Patterns are called continuation patterns. For this reason, after the formation is completed, the prices are interpreted as moving in the direction of the trend before the formation occurred.

Let's briefly examine descending, ascending and symmetrical Triangle Patterns.

 

Ascending Triangle Pattern

If it occurs in the middle of an uptrend, it is considered a continuation pattern, if it occurs during downtrends, it is considered a reversal pattern. If the price is broken in the ascending triangle formation, the movement is predicted to be upwards.

Point A is important for the confirmation of the pattern. It is to retest and rise. A one-day close or two 4-hour closes is sufficient for confirmation.

In order to be sure that the formation is completed and finished, it is necessary to check whether the movement continues after the resistance is broken. Sometimes, false breakouts may occur while the formation is forming. Therefore, the formation should be expected to occur completely.

 

Descending Triangle Pattern

It can be observed that the downtrend will continue in this Triangle Pattern. They are the formations where the support level is protected at the lower border and the top of the ascent is formed at a lower price point than before.

It can also be seen as the reverse of Ascending Triangles. There is an unbroken support line at the bottom and a line of peaks at the top. Forms a descending triangle in shape. This is interpreted as the trend will continue.

The price is reaching higher and higher levels. The point to note here is that after the triangle is crossed, the support line is broken and the decline continues. But sometimes the price can also break through the upper part of the triangle.

In order to be prepared for such situations, the completion of the formation should be waited. A target as high as the pattern's height can be set by placing an entry order almost at the top of the triangle.

 

Symmetrical Triangle Pattern

It is the formation that occurs when the decline level is more than the previous low and the rise level is less than the previous price. While this formation is forming, the price reaches lower and higher lows in the market.

Here it can be clearly seen that the struggle between buyers and sellers has no winner. There is no dominance of one over the other for a new trend to occur.

 

 

After the prices have formed this formation, it cannot be predicted in which direction the breakdown will take place. However, we can see a breakout occur when both trends converge. We will be able to understand that one of the two sides will win after the formation is completed.

In order to see on which side the trend will continue, the formation is expected to be completed. After the formation is formed, a large amount of progress is made in the direction of the previous trend. So the current price trend continues.

 

You can't buy any cryptocurrency at the bottom and sell it at the top...

I hope now, after reading my article, you have learned about Triangle Patterns.

My Last Words; Triangle Patterns give you information about the direction of the trend. Thus, the cryptocurrency gives clues about when to exit and when to enter.

Important note; Technical Analysis gives you predictions about the timing of trading. Use it on cryptocurrencies where you do Fundamental Analysis... Technical analysis is not concerned with whether a cryptocurrency is sound or not. It only gives information about the direction from price movements... Don't forget that...

 

If you enjoyed reading my article here at Publish0x, be sure to hit the follow button at the end of this post. Thank you for your continued support!!!

 

You can also follow me on Twitter if you wish.

 

 

Invest together with the smart money

Let the world’s best digital asset managers handle the trading. Share the profits.

Zignaly

 

Join the talent revolution! Bondex is the largest Web 3 professional network in the world. Jumpstart your professional career while you earn BNDX tokens for building your profile, inviting friends, and logging in every 24 hours.

Bondex

referral code is E732L