Flags and Symmetrical Triangles

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the three main categories of trend chart patterns?

Reversal, Continuation, and Neutral patterns (correct)

Ascending, Descending, and Symmetrical patterns

Bullish, Bearish, and Neutral patterns

Continuation, Reversal, and Divergence patterns

Which pattern consists of an important impulse movement followed by the formation of a channel with two parallel trend lines?

Descending Triangle

Flag (correct)

Ascending Triangle

Symmetrical Triangle

What is the theoretical objective of the Flag pattern?

The distance between the two parallel trend lines

The height of the channel

The size of the previous impulse movement, reported from the channel break (correct)

The distance between the first two tests, reported from the triangle break

What is the Symmetrical Triangle pattern?

A pattern that illustrates a contraction of the price within the current trend before continuing the previous uptrend or downtrend Signup and view all the answers

What is the Descending Triangle pattern initiated by?

A downtrend movement followed by the formation of lower highs and identical lows Signup and view all the answers

What happens when the price closes outside the triangle in the opposite direction of the current trend in the Triangle pattern?

The pattern is invalidated Signup and view all the answers

What is another name for the Symmetrical Triangle pattern?

Drapeau Signup and view all the answers

What are the three main categories of trend chart patterns?

Reversal, Continuation, and Neutral patterns Signup and view all the answers

Which pattern consists of an important impulse movement followed by the formation of a channel with two parallel trend lines?

Flag Signup and view all the answers

What is the theoretical objective of the Flag pattern?

The size of the previous impulse movement, reported from the channel break Signup and view all the answers

What is the Symmetrical Triangle pattern?

A pattern that illustrates a contraction of the price within the current trend before continuing the previous uptrend or downtrend Signup and view all the answers

What is the Descending Triangle pattern initiated by?

A downtrend movement followed by the formation of lower highs and identical lows Signup and view all the answers

What happens when the price closes outside the triangle in the opposite direction of the current trend in the Triangle pattern?

The pattern is invalidated Signup and view all the answers

What is another name for the Symmetrical Triangle pattern?

Drapeau Signup and view all the answers

What are the three main categories of trend chart patterns in trading?

Continuation, reversal, and consolidation patterns Signup and view all the answers

What is the Flag pattern?

A chart pattern that marks a pause in the current trend before continuing the previous uptrend or downtrend Signup and view all the answers

What does the Flag pattern consist of?

An important impulse movement followed by the formation of a channel, which takes the form of two parallel trend lines Signup and view all the answers

What is the theoretical objective of the Flag pattern?

Corresponds to the size of the previous impulse movement, reported from the channel break Signup and view all the answers

What is the Symmetrical Triangle pattern?

A common trading pattern in forex and stock markets that illustrates a contraction of the price within the current trend before continuing the previous uptrend or downtrend Signup and view all the answers

What does the Symmetrical Triangle pattern consist of?

An important impulse movement followed by the formation of a triangle in which the price narrows Signup and view all the answers

When is the Triangle pattern invalidated?

When the price closes outside the triangle in the opposite direction of the current trend Signup and view all the answers

Study Notes

Trend Chart Patterns: Flags and Symmetrical Triangles

There are three main categories of trend chart patterns in trading, and continuation patterns are favored by traders as they identify the current market trend for better understanding of trading.
The Flag, also known as the Drapeau, is a widely traded chart pattern in forex and stock markets that marks a pause in the current trend before continuing the previous uptrend or downtrend.
The Flag consists of an important impulse movement followed by the formation of a channel, which takes the form of two parallel trend lines.
To complete the Flag pattern, the price must touch the upper and lower bounds of the channel at least twice each.
The theoretical objective of the Flag pattern corresponds to the size of the previous impulse movement, reported from the channel break.
The Symmetrical Triangle is a common trading pattern in forex and stock markets that illustrates a contraction of the price within the current trend before continuing the previous uptrend or downtrend.
The Symmetrical Triangle consists of an important impulse movement followed by the formation of a triangle in which the price narrows.
To complete the Triangle pattern, the price must touch the descending and ascending trend lines at least twice each.
The theoretical objective of the Triangle pattern corresponds to the distance between the first two tests, reported from the triangle break.
The Triangle pattern is invalidated when the price closes outside the triangle in the opposite direction of the current trend.
The Symmetrical Triangle can also be called the Flag pattern, and there are also Descending and Ascending Triangle patterns.
The Descending Triangle pattern is initiated by a downtrend movement followed by the formation of lower highs and identical lows, while the Ascending Triangle pattern is initiated by an uptrend movement followed by the formation of identical highs and higher lows.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of trend chart patterns with this quiz focused on Flags and Symmetrical Triangles. Learn about the key characteristics of these popular chart patterns, including their formation, completion requirements, and theoretical objectives. Practice identifying these patterns and understanding their significance in trading. Whether you're a beginner or experienced trader, this quiz will challenge and improve your understanding of trend chart patterns.