How to Trade Triangles for Forex and Cryptocurrency

A triangle is a pattern that appears on a financial price chart including forex, cryptocurrency, oil and gas. Triangles develop in short term and long-term time frames and are created by drawing trendlines along a converging price range. ... Triangles are similar to wedges and pennants and can be powerful continuation or reversal patterns. Technical analysts see a breakout of a triangular pattern as either bullish or bearish.

A triangle pattern involves price moving into a tighter and tighter range as time progresses and provides a visual display of a tightly contested battle between buyers and sellers. Eventually one side is victorious and a strong move away from the pattern may occur. The triangle pattern is generally considered to be a “continuation pattern”, with the anticipation that price will resume moving in the direction it was headed prior to the pattern appearing. Often triangle patterns serve as a consolidation phase where price regains the strength it needs to proceed in its primary trend.

John Roman
John is an active trader and educator at Investors Trading Academy with an MBA in Finance from New York University.  He began trading in 1995 focusing mainly on commodities and options, then transformed into forex investment. His current specialization covers all aspects of forex trading utilizing fundamental and technical analysis, namely chart pattern analysis. Mr. Roman has conducted training seminars on all over the world from novice to innovative strategies.  He provides a solid, collaborative and extremely encouraging training atmosphere to assist Forex traders in locating and trading momentum moves, using confirmed patterns and methods.