TriangleA triangle is a chart pattern that looks like a triangle, and it is formed by the convergence of two trend lines that demarcate the price highs and price lows respectively. There are three types of triangle patterns:
- Ascending triangles, which are a bullish continuation pattern that is formed by a horizontal upper trend line acting as resistance, and an upward sloping lower trend line acting as support. The price lows gradually get higher until they eventually push prices to break above the horizontal resistance.
- Descending triangles, which are a bearish continuation pattern that are formed by a horizontal lower trend line acting as a support, and a downward sloping upper trend line acting as price resistance. The price highs gradually get lower and eventually push prices to break out of the horizontal support.
- Symmetrical triangles which can function as a bullish or bearish pattern, because both upper and lower trend lines slope downwards and upwards respectively to converge towards each other. Price highs gradually get lower and price lows gradually get higher, so there is no bias as to the direction of price breakout.