Triangle Chart Pattern
Triangle Technical Analysis
A triangle chart pattern is one in which a price range gets narrower over time because of lower tops and higher bottoms. Some triangles come to a point in the middle of the two base points, but there are also ascending and descending triangles for which the tops decrease less than the bottoms increase, or vice-versa.
Triangle chart patterns are often considered indiciative of reversal patterns, but more often than not, they tend to be continuation patterns.
Triangle chart patterns are some of the most well-known tools used in technical analysis. The three types of triangles vary in construct and implication and are considered to last anywhere from a couple of weeks to several months. The three triangle constructs include:
Symmetrical triangle chart pattern
The symmetrical triangle chart pattern example is one in which two trendlines converge toward each other. This pattern is strictly neutral in that a breakout to the upside or downside is a recognizable confirmation that a trend is moving in that direction.
Ascending triangle chart pattern
In an ascending triangle chart pattern, the upper trendline is flat, while the bottom trendline is sloping upward. This is generally considered a bullish pattern and one in which chartists look for an upside breakout.
Descending triangle chart pattern
In a descending triangle chart pattern, the lower trendline is flat and the upper trendline is descending. This is generally considered a bearish pattern and one in which chartists look for a downside breakout.
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