Definition of the technical “triangle” pattern and its automation

In the modern financial world, many rules and laws have been formed, which can be combined into certain patterns. It’s not a secret that the market is cyclical and has the property to repeat itself. Based on this, trading strategies and popular theories are built. For example, Elliott’s wave theory has many followers and is completely based on the laws of the financial market.

In addition to the wave theory, there are also various technical formations, which all the fix api traders today call patterns.

The pattern is a technical tool for analysis of financial assets, which is completely based on the principles of the market laws. Its structure includes various candle combinations. One of the most popular, but at the same time difficult for the beginning fix api traders, is the technical “triangle” pattern.

Triangle is a kind of zigzag, which is based on at least four combinations of asset quotations movement in the fix api forex market. The boundaries of this zigzag resemble narrowing of quotations, after which we should expect a strong impulse towards breakdown.

First, let’s look at the classical formation of the technical “triangle” pattern:

The complete end of the pattern formation occurs after the movement between the levels of falling tops and growing bottoms. Drawing lines along these points, we get a triangle. 1 and 3 points refer to the falling tops, while 2 and 4 – to the growing bottoms. If we connect all these points, then we get the zigzag we need.

But this does not mean the end of the formation. After the fourth point, you should expect a reverse turn and touching the border at the fifth point, about which no one talks. But this is not even a point. This is a signal to breakdown and opening deals. Thus, if four touches have already been formed, then in the fifth one we expect the consolidation above the level and the opening of deals in the direction of breakdown, which allows us to enter at the very beginning of a new impulsive movement.

How to determine the presence of a triangle on the chart?

Most beginners have difficulties in answering this question. Finding a figure on historical quotes is not difficult, but to determine the current values ​​- this task is not easy.

Since we know that four points are necessary to form a triangle, we will expect them. And specifically the fourth one. To determine the beginning of the triangle at its very beginning is unrealistic, because it may turn out to be a corrective movement and departure to a new wave or the formation of a flag, rather than a triangle. Therefore, the first three points should be found. If they are formed, we can already presumably know the boundary for the fourth one. But the most important is the fact that if there are points 1 and 3, then we will already know where a possible breakdown is located and behind this zone we will set pending orders for fix api trading.

Fix api forex market is also very cyclical, and increased volatility creates many trading opportunities. In order to keep the trend and not to let all the signals pass, you can automate the process of determining the pattern of triangle, because all conditions are easily implemented in the program code. The program simply sets the conditions for the search for double growth of minima and at the same time a double decrease of tops. Also, the ZigZag indicator can come to the rescue, on the basis of which most of these algorithmic solutions are built.

Since an important parameter in the work of the technical “triangle” pattern is closing of the quotes above the boundaries of the figure, then it is necessary to use market conditions instead of the terms of the brokerage company. Because of this, false signals can be formed, which will provoke additional risks for the managed capital. That’s why we created special software that allows fix api traders to receive the most relevant and correct data, in the first place financial quotes –

Fix api will optimize the quotes you receive and improve the results of trading thanks to the more timely and relevant data.


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