With ascending triangles, trend lines converge with a horizontal trend line for upper resistance, and a positive sloping support trend line.

Ascending Triangles offer a clearer picture of potential breakouts. Since the upper resistance level is horizontal above, and lower support is ascending upward, this pattern suggests the market trend is still bullish and the breakout will likely be bullish.


A triangle is formed between converging trend lines. One ascending support line, and one descending resistance line.

Ranging Signal

As triangle patterns form they suggest the market will be constrained by the trend line, offering ranging trading opportunities.

Breakout Signal

Because these patterns are converging, constricting price action to tighter and tighter trading ranges, they suggest that price action will eventually breakout. Swing traders will watch for breakouts as price action approaches the triangle's trend lines.

Fundamentally, triangles often form as uncertainty fills the market, and traders are unsure of where to take price. It is common for the market to form triangles leading up to major economic reports or news, as traders consolidate their positions and hold off entering the market until the impact of the expected release has been felt. The actual event may cause the market to move sharply, thus triangles often precede big breakouts in price action.

There are three types of triangle patterns, (Symmetrical, Ascending & Descending) each suggest something different about price the future direction of price action.