Ok i understand they have a flat bottom and descending lower high pattern, but then there is a bullish descending triangle version? Then i assume there is a ascending triangle bullish and a bearish version too? Is so confusing. how would i know either ascending or descending triangle which of them will be bullish or bearish version.
Well ... they don't have to have to have a flat bottom, actually: they can have a slightly descending bottom but on a lesser descent than their top is descending. That's still a "descending triangle". I think you can find more explanation of this at Thomas Bulkowski's site (patternsite.com), or in Martin Pring's book on chart patterns. Excuse my answering a question with a different question, but why do you need to know? You can perhaps either wait and see which way the price breaks from them and trade in that direction, or even be prepared to trade the break from them in either direction, using buy-stop/sell-stop entries? Trying to "know in advance" is a different (and generally a less reliable) attempt at "prediction" from simply trading the break when it arises. For what it's worth, a resumption of the pre-triangle trend is widely claimed to be more common, overall, than a reversal of it. And welcome to the forum.
Yes it's like the Ying & Yang. It's a mix of Fractals, Goods & Evils. There is really no need to be confused. Actually it's even more complex than that ! You got : Ascending Bullish that Work Ascending Bullish that don't Work Ascending Bullish that Work but Don't Work Ascending Bullish that Don't Work but Work Ascending Bearish that Work Ascending Bearish that don't Work Ascending Bearish that Work but Don't Work Ascending Bearish that Don't Work but Work Descending Bullish that Work Descending Bullish that don't Work Descending Bullish that Work but Don't Work Descending Bullish that Don't Work but Work Descending Bearish that Work Descending Bearish that don't Work Descending Bearish that Work but Don't Work Descending Bearish that Don't Work but Work Don't Give Up the Fight ! Luckily the forum has posters like @Xela
Bullish descending triangle? 1) after a large price advance in a short period where "x" period atr spiked the offers increase. 2) "x" period atr slowly reverts to mean. 3) the price that will become the base in "x" periods is determimed as relative value and is bid whenever price descends to it. 4) liquidity (not volume, read Market Profile) pockets develop above "x" period highs . 5) Hft's and darkpools probe and exploit these deserts and price will eventually explode through a thim liquidity area rapidly lifting offers causing momentum ignition . 6) Everyone else follows. There is a 1 in 117 chance this description is right because anything can happen. GL.
%% Good question Log T; having done some study on that. Why dont you study trends + price trends, like 200 day moving average. You never get paid on triangles. Wisdom is profitable to direct; even if some profit on them, dont bother with stuff like that.
TYPICALLY, a bullish ascending triangle has a flat top and an ascending bottom portion. This is SUPPOSED to signify increasing buying pressure meeting resistance at a price level until the buying pressure snaps through and causes a breakout to the upside. It is a nice pattern to see in a continuation of a trend and I often use it as a signal to buy expecting a breakout. The opposite is true of a bearish descending triangle. Then there is a descending triangle that is more like a Bull Flag except that in a bull flag you have a descending short term parallel channel on a flag pole. With a bullish descending triangle I refer to it as a bullish triangle flag but not sure if that is the right term. In that one you have a descending triangle formed on a flag pole. However, this can have various shapes with the top side slope steeper than the bottom or the top side shallower than the bottom. These are all bullish when in a trend and on a flag pole type of price movement before. The opposite is true in down trends. Obviously, these are signals of what is LIKELY to happen and can be good buying or selling opportunities based on the trend by telling you the trend is taking a rest or breather only to continue the climb in the same direction of the trend. Often times these are also noted to form as the flag pole hugs the top edge of a bullish price channel uptrend and the breather (triangle) sets up as price slops sideways or slightly down toward the lower edge of the bullish price channel. Most of these are continuation signals. I have been fooled most often by these when a triangle becomes a flag or at the beginning of a new trend. I would not trade these personally as a signal a trend is about to start or reverse. Use them only with other signals. I hope that helps.