In actual trends, triangular arrangements tend to appear in different time periods, and most of the time they are in the form of relays.
Therefore, the triangular arrangement form has high operational value in actual combat; although it sometimes appears in the reverse form, its features are relatively obvious and easy to identify. Next, let’s learn the form of the triangle arrangement
- Four basic forms of triangles
According to the morphological characteristics of the triangle, it can be divided into ascending triangle, descending triangle, symmetrical triangle and diffusion triangle. Ascending, descending, and symmetrical triangles occur relatively frequently, with running features in the form of relays, which are often an opportunity to buy along an operating trend.
- The internal structure of the triangle
The standard triangle adjustment shape consists of 5 sides and 6 points. Each side consists of a 3-wave structure, and each side operates at 61.8% of the ideal amplitude of the previous side. Knowing the internal structure of the triangle helps us to follow the market rhythm in time in the process of judging the actual trend step by step.
In ascending and descending triangles, the important buy or sell point is the last point of the triangle formation, which is the intervention point after a valid breakout. In some cases, there will be an exit after the breakout of the triangle, which is also a more reasonable opportunity to intervene when exiting the breakout line.
Also, it should be noted that an ascending triangle in an uptrend tends to indicate short-term strength, and a descending triangle in a downtrend tends to indicate short-term weakness.
In symmetrical triangles, the fundamentals of trading are the same as those of ascending and descending triangles, which can be understood by referring to the picture. Be careful to follow the trend in actual trading.
Symmetrical triangles, ascending triangles in uptrends, and descending triangles in downtrends are mainly homeopathic breakthroughs and can be used as a classic relay form. In this form, we cannot simply operate on the form itself, but simultaneously judge the trend phase of the form. . The ideal operation mode is to wait for an effective breakthrough to occur, and the operation before the breakthrough has a certain game nature.
Counter-example: Diffusion triangles sometimes have a reversed shape and the oscillations increase in amplitude. Large, trumpet-shaped.
- Pay attention to the meaning of breakthrough time
In general, choose a location between 12-34 of the lateral width of the triangle to break in the original direction. If the breakout does not go beyond this area, the trend of the triangle becomes smaller and the variable for the direction of the breakout increases. This is mostly a direction to wait for the action to break out.
- Temporary error breakthrough
False breakouts often occur in actual trends. How to identify false breakouts? The recommended common discrimination methods are two: (1) the principle that the closing price crosses the breakout line, (2) after the breakout, stand firmly above the breakout line, and the unilateral breakthrough range is relatively large.
Reminder: The European Bank hinted that it is not in a hurry to raise interest rates, the dollar continued to strengthen and gold prices fell, and US oil rose nearly 9% this week. For specific operations, please pay attention to Reelfinancial.com. The market is changing rapidly, investment needs to be cautious, and the operation strategy is for reference only.