Triangles: symmetrical, ascending and descending

Triangles are among the most common continuation patterns. They form when price oscillation narrows gradually between two converging lines until they almost meet, drawing a triangle. It is a period of compression and energy build-up preceding an explosion in some direction.

The three types

• The symmetrical triangle Symmetrical — falling highs and rising lows, so the two lines slope toward each other. A neutral pattern: price usually continues in its prior direction, and the breakout is what settles the direction.
• The ascending triangle Ascending — horizontal resistance on top and rising lows at the bottom. A positive pattern whose breakout tends upward.
• The descending triangle Descending — horizontal support at the bottom and falling highs on top. A negative pattern whose breakout tends downward.