Summary of Chart Formations

Chart formations are like bazookas because they often create huge explosions on the chart.

Triangles

Symmetrical triangles 

• Consist of lower highs and higher lows
• Place entry orders above the lower highs and below the higher lows

Ascending triangles

• Consist of higher lows and a resistance line
• It usually means that the price will break the resistance line and go higher but you should place entry orders on both sides just in case the resistance line is too strong. 
• Place your entry orders above the resistance line and below the higher lows. 

Descending triangles   

• Consist of lower highs and a support line
• Usually mean that the price will break the support line and go lower but you should place entry orders on both sides just in case the support line is too strong. 
• Place your entry orders above the lower highs and below the support line.