A triangle is a compression pattern — the range narrows because one side keeps pressing.
- Ascending triangle — a flat upper side, a rising lower side (higher and higher lows). Often (not always) breaks upward, especially in an uptrend.
- Descending triangle — a flat lower side, a falling upper side. Often breaks downward in a downtrend.
- Symmetrical triangle — both sides converge. Neutral; follow the direction of the breakout.
Execution
- Trigger: a close through one of the sides.
- Stop: on the opposite side of the pattern / beyond the last swing inside the pattern.
- Target: the widest height of the triangle projected from the breakout point.
Key points
- Do not guess the direction before the breakout; compression can break either way.
- Breakouts closer to the apex of the triangle tend to be more reliable than ones that come too early.
Save your learning progress
Sign up free to mark lessons as completed and unlock all member lessons.
Sign Up Free
Risk disclaimer: all content on this site is provided for educational purposes and is not financial advice, signals, an invitation to trade, or a promise of profit. Trading carries a high risk and may result in the loss of part or all of your capital. Check the legality of service providers in your jurisdiction.