What does Triangle Pattern mean?
Triangle patterns are similar to wedges, but they are more symmetrical. They form as a continuation pattern most usually, but can also be consolidation. They present on a chart as a horizontal straight line and a diagonal straight line marking the highs and lows of a range, forming an open-ended triangular shape. There are three types of triangle patterns:
1. Descending Triangle. This is formed when the lower line of the triangle is a horizontal line, and the upper line tilts downward from left to right. The descending triangle represents a downward-trending, or “bear,” market.
2. Ascending Triangle. This is the inverse of the descending triangle, with an upward left-to-right tilted line at the bottom, and a horizontal line at the top. Ascending triangle patterns indicate an upcoming “bull,” or upward-trending, market.
3. Symmetrical Triangle. The symmetrical triangle stands out because both lines forming the triangle are tilted. It’s also a more tricky pattern to predict, because it can continue in either an upward (“bullish”) or downward (“bearish”) direction.