What is Triangle Pattern?
A triangle pattern is a consolidation formation where the price range narrows over time, creating converging trend lines. Types include ascending (bullish), descending (bearish), and symmetrical (neutral).
Triangle Pattern Explained
Triangles represent a period of indecision where the range tightens before a resolution. Ascending triangles (flat top, rising bottom) are generally bullish. Descending triangles (flat bottom, declining top) are generally bearish. Symmetrical triangles can break either way. The pattern typically resolves in the direction of the prior trend about two-thirds of the time.
Real-World Example
A stock in an uptrend forms an ascending triangle with resistance at $75 and progressively higher lows at $65, $68, $71, $73. When it breaks above $75 on volume, a trader enters long with a target of $75 + ($75-$65) = $85.
Related Terms
Build Discipline Around Triangle Pattern
Understanding Triangle Pattern is one thing. Applying it consistently is where most traders fail. Ivern AI helps you build the daily habits to actually use what you know.
Start Building Discipline — Free