7.28What is a triangle pattern?
1What is it?
A triangle forms when price swings get smaller and converge between two trend lines. Ascending (flat top, rising lows) is usually bullish; descending (flat bottom, falling highs) bearish; symmetrical can break either way.
2Why does it exist?
It shows a tightening battle between buyers and sellers that usually resolves with a sharp move.
3Diagram
4Quick revision
- Converging trend lines.
- Ascending/descending/symmetrical.
- Trade the breakout, with a stop.
5Knowledge check
Q1. Ascending triangle bias?Show answer
Bullish.
Q2. Symmetrical triangle direction?Show answer
Can break either way.
Q3. What happens to swings inside a triangle?Show answer
They get smaller.