Triangle patterns are consolidation formations where price ranges between converging trendlines, creating a triangular shape. As the range narrows, pressure builds until price breaks out. There are three types: ascending (bullish), descending (bearish), and symmetrical (neutral). Triangles are among the most common and tradeable chart patterns.
- Price consolidates between converging trendlines
- Three types: ascending, descending, symmetrical
- Trade the breakout with volume confirmation
Types of Triangles
Ascending Triangle (Bullish):
_________
/|
/ | Flat resistance
/ | Rising support
/___|
Descending Triangle (Bearish):
\ |
\ | Falling resistance
\ | Flat support
\|________
Symmetrical Triangle (Neutral):
/\
/ \ Falling resistance
/ \ Rising support
/------\
Quick Reference: Triangle Types
| Type | Upper Line | Lower Line | Bias |
|---|---|---|---|
| Ascending | Flat | Rising | Bullish |
| Descending | Falling | Flat | Bearish |
| Symmetrical | Falling | Rising | Neutral |
Example: Trading Ascending Triangle
Ascending Triangle Breakout:
| Phase | Price | Action |
|---|---|---|
| Resistance | ₹100 | Tested 3 times |
| Support | ₹92→₹94→₹96 | Higher lows forming |
| Breakout | ₹102 | Above resistance, BUY |
| Stop | ₹95 | Below last low |
| Target | ₹110 | Triangle height (₹8) added |
Triangle patterns show price consolidating between converging lines. Ascending triangles are bullish; descending are bearish; symmetrical can go either way. Trade breakouts from triangles with volume confirmation and stops on the opposite side.
Ascending Triangle
Characteristics
- Flat resistance (multiple touches)
- Rising support (higher lows)
- Shows buyers absorbing supply at resistance
Trading
- Entry: Break above flat resistance
- Stop: Below last higher low
- Target: Pattern height above breakout
Reliability
Most reliable triangle. Buyers consistently stepping in higher.
Descending Triangle
Characteristics
- Falling resistance (lower highs)
- Flat support (multiple touches)
- Shows sellers pressuring despite support
Trading
- Entry: Break below flat support
- Stop: Above last lower high
- Target: Pattern height below breakdown
Reliability
Reliable bearish pattern. Sellers consistently pressing lower.
Symmetrical Triangle
Characteristics
- Falling resistance (lower highs)
- Rising support (higher lows)
- True consolidation, no directional bias
Trading
- Wait for breakout direction
- Enter on break with volume
- Stop on opposite side
- Target: Pattern height in breakout direction
Reliability
Less predictable. Trade the breakout, not the expectation.
Triangle Trading Rules
Entry
Wait for close outside triangle, preferably with volume expansion.
False Breakouts
Common in triangles. Wait for confirmation candle or volume.
Target Calculation
Measure the widest part (base) of triangle. Project from breakout point.
Time Factor
Breakouts typically occur 2/3 to 3/4 of the way to the apex.
Common Mistakes
-
Predicting direction in symmetrical – Trade the break, don’t guess.
-
No volume confirmation – Low volume breaks often fail.
-
Trading inside triangle – Wait for breakout. Range trading is valid but different strategy.
-
Too few touches – Need at least 4 touches for valid triangle.
How JournalPlus Tracks Patterns
JournalPlus lets you tag triangle patterns and breakout direction, tracking which types perform best in your trading.
