Triangle Patterns

Triangle patterns are chart formations drawn by connecting converging highs and lows during a consolidation. An ascending triangle has a flat resistance line above rising lows; a descending triangle has flat support below falling highs; a symmetrical triangle has both boundaries converging, showing compression without a clear directional bias. All three describe shrinking volatility as buyers and sellers narrow their range, and traders watch for a decisive break of one boundary, often projecting a target equal to the height of the triangle's widest part. Because volume and conviction usually fade toward the apex, triangles produce frequent false breakouts there, so many traders wait for a close beyond the line or a retest before treating the break as valid.