Fibonacci Triangle

The Fibonacci Triangle

In a regular triangular lattice we draw on top a red regular unit triangle, underneath a yellow rhombus and beneath a second red triangle. Under the red triangle an other yellow rhombus and beneath a red isosceles trapezium. And now always under the red trapezium a yellow rhombus and under the yellow rhombus a red trapezium.

Ascending Triangles

Ascending Triangles is a bullish continuation pattern that is shaped like a right triangle consisting of two or more equal highs forming a horizontal line at the top.

Example of an ascending "triangle"

Triangle

There are 4 kinds of triangles in technical analysis:

• Ascending triangle
• Descending triangle
• Symmetrical triangle
• Extending triangle

Triangles usually form over a period between three days to three weeks. They take longer to form than flags or pennants and will often form after a major price move.

When a pattern develops that displays a series of peaks that are progressively lower and a series of higher troughs, it generally indicates that indecision exists in the market. Usually, the price will break out of the pattern with an equal amount to the base of the triangle and in the same direction as the original trend. Just like with symmetrical triangles, the move from the apex to the equal base of the triangle can be expected.

The two trend lines should indicate at least four points of contact before a break out can occur. In these types of patterns, with a horizontal trend line, the direction the break out will follow can be predicted. For example, buyers are generally more aggressive than sellers when an ascending triangle is present and each attempt made to pull back will stop at earlier stages.