Triangles: Ascending, Descending, Symmetrical

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.