At the beginning of the course, we mentioned three types of the trend: uptrend, downtrend and sideways trend.
An uptrend is characterized by making higher highs and higher lows.
A downtrend is recognized by making lower highs and lower lows.
The sideways market is easiest to be explained because it is simply type of the market where there are no rules.
Price simply ranges from the resistance to the support until one of these two gets broken.
There are numerous types of sideways market.
We would like to introduce you to the most popular ones and in our opinion the easiest to spot and trade.
Triangles are the type of sideways market that could be easily spotted.
There are two main types of triangles:
1) Asymmetrical triangle
As you may notice on the example, its characteristic is forming higher lows and lower highs.
This is the type of the trend that may happen either after an uptrend or a downtrend.
Neither bulls nor bears are leading group in the market.
This is typical type of ranging market.
2 ) Ascending triangle
In the trading community, this type of triangle is considered bullish.
We would partially agree and consider it semi bullish.
If that is bullish, it wouldn’t be in ranging market but in an uptrend and it would be making higher highs and higher lows.
It is making higher lows but not higher highs and that’s the reason we can’t call it bullish but semi bullish chart pattern.
3) Descending triangle
The same way ascending triangle is marked as a bullish pattern, the descending triangle is considered as a bearish chart pattern.
Ask any of them to give you a clear clue why it is bearish, just a few will even to try to give you an answer.
They heard from someone and they took it as an ultimate truth without even considering further research.
We consider this pattern as a semi bearish one.
The reason is quite simple.
By creating lower highs and equal lows, it shows some kind of weakness in the market but not enough to consider it as a bearish chart pattern.
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.