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Symmetric Triangle Forex Pattern

Triangles can be visualized as pennants with no poles. There are four types of triangles: symmetrical, ascending, descending, and expanding (broadening).

A symmetrical triangle consists of two symmetrically converging support and resistance lines, defined by at least four significant points. (See the Figure below).

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Pennant Forex Pattern

The pennants are closely related to the flags. The same principles apply. The sole difference is that the consolidation area better resembles a pennant, as the support and resistance lines converge.

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Flag Forex Pattern

The flag formation provides signals for direction and price objective. This formation represents a brief consolidation period within a solid and steep upward or downward trend. The consolidation itself is bordered by a support line and a resistance line, which are parallel to each other or very mildly converging, making it look like a flag (parallelogram) and tends to be sloped in the opposite direction from the slope of the original trend, or is simply flat.

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Diamond Forex Pattern

Diamond Forex Pattern

The diamond formation tends to occur at the top of the trend. The price activity may be outlined by a shape resembling a diamond. The increase and decrease in trading volume closely mimic the combination of divergent and convergent support and resistance lines(see the Figure below).

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Triple Bottom Forex Pattern

In a triple-bottom formation, the bottoms have about the same amplitude. A parallel line (the neckline) is drawn against the line connecting the three bottoms (B, D, and F.) As a support line, the neckline is broken at point A. It turns into a strong resistance for price levels at С and E, but eventually fails at point G (see Figure below)

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