ATMASphere Aug 2014

2. Symmetrical Triangles: These are very similar to
These are very similar to pennants,
are formed by 2 converging lines. These have lengthy formation
periods. These triangles are also sometimes called “Coils”, which
means that like a coil, price is consolidating and tightening to
finally open up towards the trend.
3. Descending Triangles: The pattern will have lower highs
(resistance) and a flat bottom line (support). This pattern
may have 2 or more lows near the support line. Volume
contracts during the triangle formation and increases at the
time of breakout. This is more accurate at the times of
Downtrend , when the price is moving lower but find support
at some exhaustion point or pivot point and from there it
consolidates and brings more sellers in the market and finally
break towards the trend, the breakdown moves are usually
fast and furious after the breakdown. A close below is
preferred than a penetration of the support line for taking a
trading decision.
AUGUST 2014
ATMASPHERE | 6