Triangles occur not only in geometry, but also in technical analysis in several variations. They are often categorized as continuing formations. However, they often appear as reversal formations. Below we take a look at the two forms of the right -angled triangle: the rising triangle and the falling triangle.
Rising triangle
The rising triangle or upward triangle (see graphic 1) has an increasing lower boundary line and a horizontal upper limitation line. The minimum requirement is four alternating reversal points for the definition of the triangle. However, it is often five or six. The formation has a forecast value in such a way that most of the outbreaks are made up, so that it is considered a bullish. Statistically speaking, there is about 62 percent of all upward triangles to an outbreak over the horizontal triangle line and thus to a purchase signal. As a thumb rule, an outbreak should take place at the earliest half of the route from the base of the triangle to the top and at the latest after three quarters of the route if it should be reliable. The statistically best outbreaks result in the range between 60 and 65 percent. The expected minimum course goal from the triangle results from the projection of the height of the triangle on the horizontal line of boundary. The likelihood that this price target will be achieved with a valid outbreak (closing course base) is quite high at around 89 percent. In a little more than half of all cases, a return movement occurs to the outbreak point after the outbreak. Contrary to classic expectations, there is an outbreak down and thus a sales signal in about a third of all cases.