While false moves occur at these apex points, triangles have a higher degree of reliability than most breakouts. The angle of inclination defines this pattern's identity. Ascending triangles rise again and again toward a ceiling resistance level. Symmetrical t riangles surge rhythmically across both sides of a horizontal axis dividing the formation right through the middle. The bearish descending triangle bounces weakly off bottom support.
High volatility marks the birth of new triangles.
But as they approach their termination points, activity decreases sharply. This highlights a major risk in successfully trading these patterns. Should no ignition spark the expected breakout, the chart may flat-line, with price meandering endlessly in sideways motion. Traders caught in this phenomenon are advised to close positions and move to more fruitful endeavors. Ascending Triangles - Buying pressure builds as price bounces repeatedly off a ceiling of horizontal resistance.