Triangle Pattern

Triangle patterns are chart formations created by drawing converging trendlines that connect a series of price highs and lows, forming a triangular shape. There are three main types: ascending triangles (flat top resistance with rising support — typically bullish), descending triangles (flat bottom support with declining resistance — typically bearish), and symmetrical triangles (both trendlines converging — neutral, breaks in the direction of the prior trend). Triangles represent a period of consolidation where the range between support and resistance narrows as buyers and sellers reach equilibrium. The eventual breakout from the triangle typically occurs in the direction of the preceding trend (for symmetrical) or in the direction indicated by the pattern type. Volume usually decreases during the triangle formation and expands on the breakout. The measured move target is calculated by measuring the height of the triangle at its widest point and projecting that distance from the breakout point. Triangles generally resolve between the halfway and three-quarters point of the pattern's length — breakouts too close to the apex tend to be less reliable.