Triangles are common formations that appear throughout the chart analysis and will project any underlying features worth to notice. Ascending triangles on the other hand are specific bullish patterns, where the prices will break upside, making it rather visible at first glance.
Just as these kinds of triangles will resort to a particular market environment, so are the descending triangles, which in order will be applicable for the bearish patterns accordingly by the same definition. Every triangle formation will take place within the reach of five individual waves, consecutively labeled with appropriate letters of a-b-c-d-e. The eventual price value held by the numbers can be located as the horizontal line that defines an upper trend, being the b-d line.
Whenever the prices should break the previously occurring lows, the line could still be broker eventually, appearing as the trend line and thus keeping the pattern recognizable in result. After a 50% level of retracement that would be partaken by three of the waves, comparison of the previous waves is going to show how the formation of the e wave and the b-d trend line have been undertaken. After a triangle has been already consider viable for trading, there should be several factors to keep under control, which would involve the measured movement of the minimum distance of the travel.
The so called thrust would represent the 75% of the longest from all waves on which the triangle is based upon. Whether a corrective move or an impulsive move will occur, depending on how the triangle has been formed during that time. Call options should be bought after the b-d trend line has already been broken, with an expiration date generated by the triangle formation.