Triangles (Ascending, Descending, Symmetrical)
Coiling ranges with converging boundaries — pressure building toward a directional release.
Continuation PatternsIntermediate 5 min read· Lesson 3 of 6 in Chart Patterns
Structure & psychology
Ascending: flat resistance + rising lows — buyers getting more aggressive against a fixed seller; usually resolves UP. Descending: flat support + falling highs — the mirror, usually DOWN. Symmetrical: both converge — direction genuinely unknown until the break; the prior trend gets the benefit of the doubt.
Entry
The close beyond the boundary line, ideally on expanding volume (volume typically CONTRACTS inside the triangle — that contraction is part of the pattern's validity).
Stop loss
Inside the triangle, beyond the most recent opposite swing — or beyond the apex-side boundary for tighter risk.
Target
Height of the triangle's base projected from the breakout point.
Failure conditions
Breaks on anemic volume that immediately fall back inside; drifting past ~75% of the way to the apex without breaking (patterns that 'apex out' lose their energy); a symmetrical triangle after a huge run breaking AGAINST the trend deserves respect, not denial.