Forex Questions and Answers - FXAnswer

The expanding or broadening triangles are unusual patterns. They consist of a horizontal mirror image of symmetrical triangles, where the tip of the triangle is next to the original trend, rather than its base.

Volume follows the horizontal mirror image switch as well and increases steadily as the chart formation develops.

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Trend analysis is a complex process that goes beyond trend lines, channel lines and retracements. An important aspect of this type of analysis is the identification of patterns that reinforce trends and of formations that signal the reversal of trends. Chart formations that show the extension of trends are called continuation patterns. They consist of pauses within trends and they are generated by traders who realize some or all of their profit typically ahead of significant releases of economic data or strong technical level. These behavioral patterns translate into chart formations and tend to look like neutral moves. However, they can either slope against the original trend or, more rarely, slope in the direction of the trend. The consolidations are fairly short – but not always. The most important continuation patterns are: flags, pennants, triangles and wedges. Let’s focus on triangles. Differences between a Pennant and a Triangle A pennant is trend continuation formation

Sometimes called the broadening formation, this pattern often occurs at market tops.

A triangle chart pattern used in technical analysis, where the top level increases and the bottom level decreases, moving farther and farther away from each other. When charted, the pattern looks like the reverse of a symmetrical triangle pattern. The expanding triangle is said to be a good indicator of a reversal pattern, and is usually analyzed when a security's price has been increasing to see if a decrease is likely to occur. also called broadening top and broadening formation

A triangle continuation formation that looks like a horizontal mirror image of a triangle; the tip of the triangle is next to the original trend, rather than its base