Triangle (chart pattern)

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Triangles within technical analysis are chart patterns commonly found in the price charts of financially traded assets such as stocks, bonds, futures. The pattern derives its name from the fact that it is characterized by a contraction in price range and converging trend lines, thus giving it a triangular shape.[1]

Triangle patterns can be broken down into three categories: the ascending triangle, the descending triangle, and the symmetrical triangle.[2] While the shape of the triangle is significant, of more importance is the direction that the market moves when it breaks out of the triangle.[3] Lastly, while triangles can sometimes be reversal patterns—meaning a reversal of the prior trend—they are normally seen as continuation patterns (meaning a continuation of the prior trend).[4]

Type of triangles[edit]

  • Ascending triangle
  • Descending triangle
  • Symmetrical triangle

See also[edit]

References[edit]

  1. ^ Kamich, Bruce (2022-01-03). "How Triangle Patterns Can Forecast a Key Turn in 2022". TheStreet. Retrieved 2022-01-05.{{cite web}}: CS1 maint: url-status (link)
  2. ^ "What is the Ascending Triangle Pattern?". daytradingz.com. Retrieved 2022-01-05.{{cite web}}: CS1 maint: url-status (link)
  3. ^ "10 chart patterns every trader needs to know". IG. Retrieved 2022-01-05.
  4. ^ "Here are 7 of the top chart patterns used by technical analysts to buy stocks". Business Insider. Retrieved 2022-01-05.{{cite web}}: CS1 maint: url-status (link)