Ascending, Descending, Symmetrical Triangle Stock Chart Patterns -- with David Moadel
welcome to looking at the markets with David Modell today I'm going to tell you
all about triangles or at least give you an introduction to triangle stock chart
patterns they're very powerful there are three main types of triangles all right
and you have the bullish one and it's the ascending triangle you have the
bearish one the descending triangle and then you have the symmetrical triangle
and you don't know if it's going to be bullish or bearish depends on which way
it breaks all right let's start with the ascending triangle and none of these
work on none of them work 100% of the time none of these are perfect you still
have to make your own decisions and confirm everything for yourself all
right so the ascending triangle all right you have a support line and a
resistance line but notice that the resistance line is horizontal okay it's
flat all right and then the support line is not flat it is going up alright so as
you can see the support line is flat so it the candles keep hitting their head
on that overhead resistance and that overhead resistance is just staying at
the same level and so you have a flat trendline here a flat resistance line
but on the other hand the support line it's not flat okay it's higher and
higher every single time all right and so you have two lines two trend lines
converging upon each other and so you get a tighter and tighter range but it's
also higher and higher because of that rising support line okay and then if you
get a big candle that closes way way above that resistance line that it was
hitting its head against over and over okay breaks and closes way above that
with a big green candle that's when many people take a long position when it
breaks clearly and convincingly and closes above that resistance line and if
below that you see a big green volume candle or big green volume bar then
that's even better confirmation all right because there's more conviction
behind it more volume all right so and by the way I want to
differentiate between a triangle and a wedge when you get when one of the two
you know lines is flat or horizontal then that's a triangle
whereas if both lines were kind of going in the same direction but neither one
was horizontal then that would be they'll be more of a wedge than a
triangle okay I know this is a triangle and not a wedge because one of the two
lines is horizontal okay so that's the bullish one the ascending now the
descending triangle is bearish it's just the opposite basically okay you have a
support line that's horizontal or flat and so it keeps bouncing off of the same
price it's not an exact science it's not bouncing exactly off of it but multiple
times more than once it's bouncing off of the same support line on the other
hand the resistance trend line is getting lower and lower and lower oh and
so the two lines are converging towards each other but it's going downwards okay
so yes it's getting tighter and tighter with the channel but it's going
generally downwards and if you get a big red candle closing with you know
convincingly below that that floor there that support line and if you get a big
red volume bar below that to tell you there's lots of volume behind that down
move lots of conviction behind that that lower move then that could be a place to
take possibly a short position of course you have to make your own decisions with
all these things don't just do anything blindly okay don't do it just because
the triangle told you told you to you have to make your own decisions but
that's where some people some traders will take a short position okay and then
there's the symmetrical triangle where neither line is horizontal or flat like
these two okay and again with a wedge with a wedge it looks kind of like the
triangle except neither one of these is going to be horizontal you'll get two
lines converging towards each other but also going upwards but eventually
they'll meet if that's a wedge okay with a you know
that's a rising wedge with a falling wedge you would get both lines
converging downwards towards each other but neither one again would be flat or
horizontal now what if you get both lines both lines converging towards each
other and they're not both going upwards and they're not both going downwards
they're just kind of equal they're kind of meeting in the middle here well
that's a symmetrical triangle okay and so the support line is getting higher
and higher and higher the resistance line is getting lower and lower all
right and so you don't know whether it's bullish or bearish until it either
breaks out or breaks down all right if it breaks down and closes way way you
know with a big red candle below the support level there and if you have a
big red volume bar to tell you that there's conviction behind that move you
can take a short position if you want to traders will often take a long position
if it breaks out if it closes with a big green candle above that resistance line
and it also it helps again looking at volume imagine if there's a big green
volume bar below that candle then that could be even greater confirmation that
it might be time to take a long position on the breakout of the symmetrical
triangle you just don't know whether it's going to be bullish or bearish
until it happens all right let's take a look at a couple of examples quiz pop
quiz which one is this well if you guessed that this is yes the descending
triangle you would be correct all right you got the flat or horizontal support
there you've got the resistance one two three times down down down it's
converging getting really tight and if it has a big green candle breaking below
that support level and a big green volume bar to that that's even greater
reason to possibly take a short position or at least sell your long position if
you have one all right which one is this well if you guessed that it is
in a sending or ascending triangle you are correct
okay you got that horizontal resistance there
the rising support level gradually rising but rising nonetheless it's
getting really tight that breaks above that could be a sign to take a long
position and also look for that look for a big green volume bar below it if you
want even further conviction or confirmation all right so that has been
your introduction to triangles it's powerful okay try it if you want to in
your own trading all right if this was helpful to you please give this a thumbs
up on YouTube and leave a comment what do you want to see do you like these
patterns tell me what you want to see all right and subscribe to my youtube
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video like this one and I do offer coaching for trading investing charting
all that good stuff I can help you put together a plan so you can plan your
trade alright and trade your plan of course my name is David Modell you can
contact me at David Modell at gmail.com thank you so much for watching and
listening I'll talk to you again soon