# Understanding Triangle Chart Patterns in Technical Analysis

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> **Definition**
>
> A triangle chart pattern is used in technical analysis and forms a triangle-like shape on a price chart.

## What Is a Triangle Chart Pattern?

A triangle chart pattern is a tool used in technical analysis. Named for its resemblance to a series of triangles, the pattern is created by drawing [trendlines](https://www.investopedia.com/terms/t/trendline.asp) along a converging price range.

The purpose of triangle chart patterns in technical analysis is to signal pauses, potential continuations, or potential reversals in the prevailing trend.

Traders should watch for breakouts to confirm the triangle chart pattern's signal before deciding to buy or sell.

There are three primary types of triangle chart patterns: ascending, descending, and symmetrical. Ascending triangles suggest a bullish trend, descending triangles often indicate potential bearish movements, and symmetrical triangles usually continue previous trends and can go either way.

### Key Takeaways

*   Triangle chart patterns are critical tools in technical analysis, used to predict continuations or reversals in market trends based on converging trendlines that form a triangular shape on price charts.
*   There are three main types of triangle patterns: ascending, descending, and symmetrical. Each signals different market movements and requires careful analysis for accurate trading decisions.
*   Ascending triangles indicate a potential bullish trend, while descending triangles often suggest bearish movements. Symmetrical triangles can go either way, usually continuing the previous trend.
*   Technical analysts use triangles along with volume spikes and other indicators to validate breakouts or breakdowns, thereby making informed decisions about entering or exiting trades.
*   Despite their usefulness, triangle patterns and other technical tools should be used with caution, as markets can remain unpredictable, and relying solely on chart patterns may not account for all variables affecting price action.

## How to Interpret Triangle Chart Patterns in Technical Analysis

[Technical analysis](https://www.investopedia.com/terms/t/technicalanalysis.asp) is a trading strategy that uses charts and patterns to help traders identify trends in stock, sector, or market prices. They monitor price patterns over time to predict future price performance.

Triangle patterns are named for their shape, formed as upper and lower trendlines meet at a right-side apex. These patterns are formed once the trading range of a stock or another security becomes narrow.

Connecting the beginning of the upper and lower trendlines forms the other two corners of the triangle. The upper trendline connects the highs, and the lower trendline connects the lows.

Triangles are similar to [wedges](https://www.investopedia.com/terms/w/wedge.asp), marked by converging trendlines, and [pennants](https://www.investopedia.com/terms/p/pennant.asp), formed during large asset movements; both are used in technical analysis.

They can be either a continuation pattern, if validated, or a powerful [reversal](https://www.investopedia.com/terms/r/reversal.asp) pattern, in the event of failure. Traders use triangles to pinpoint when the narrowing of a stock or security's trading range after a downtrend or uptrend occurs.

Three potential triangle variations—ascending, descending, and symmetrical triangles—can develop as price action carves out a holding pattern. Technicians see a [breakout](https://www.investopedia.com/terms/b/breakout.asp), or a failure, of a triangular pattern, especially on heavy volume, as being potential [bullish](https://www.investopedia.com/terms/b/bull.asp) or [bearish](https://www.investopedia.com/terms/b/bear.asp) signals of a resumption, or reversal, of the prior trend.  

> **Warning**
>
> Technical tools are used to make predictions about future trends based on past performance. But remember that the market can be very unpredictable and can swing in any direction at any time.

## Exploring Different Types of Triangle Chart Patterns

The following diagram shows three types of triangle chart patterns: ascending, descending, and symmetrical. We go into more detail about what they are and how they work below.

![Triangle](https://www.investopedia.com/thmb/nEv3DIsiQ_Lt0vShcqaqLSuBMgk=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/UnderstandingTriangle2-0651c3c900b3422cadc70d83555a5072.png)

**

### Understanding the Ascending Triangle Pattern

An [ascending triangle](https://www.investopedia.com/terms/a/ascendingtriangle.asp) is a breakout pattern that forms when the price breaches the upper horizontal trendline with rising volume. It is a bullish formation.

The upper trendline must be horizontal, indicating nearly identical highs, which form a resistance level. The lower trendline is rising diagonally, indicating higher lows as buyers patiently step up their bids.

Buyers eventually lose patience and rush into the security above the resistance price, which triggers more buying as the [uptrend](https://www.investopedia.com/terms/u/uptrend.asp) resumes. The upper trendline, which was formerly a resistance level, now becomes support.

### Analyzing the Descending Triangle Formation

A [descending triangle](https://www.investopedia.com/terms/d/descendingtriangle.asp) is an inverted version of the ascending triangle and is considered a breakdown pattern. The lower trendline should be horizontal, connecting near identical lows. The upper trendline declines diagonally toward the apex.

The [breakdown](https://www.investopedia.com/terms/b/breakdown.asp) occurs when the price collapses through the lower horizontal trendline support as a downtrend resumes. The lower trendline, which was support, now becomes resistance.

### Decoding the Symmetrical Triangle Pattern

A [symmetrical triangle](https://www.investopedia.com/terms/s/symmetricaltriangle.asp) is composed of a diagonal falling upper trendline and a diagonally rising lower trendline. As the price moves toward the apex, it will inevitably breach the upper trendline for a breakout and uptrend on rising prices or breach the lower trendline, forming a breakdown and downtrend with falling prices.

Traders should watch for a volume spike and at least two closes beyond the trendline to confirm the break is valid and not a [head fake](https://www.investopedia.com/terms/h/headfake-trade.asp). Symmetrical triangles tend to be continuation break patterns, which means they tend to break in the direction of the initial move before the triangle forms. So if an uptrend precedes a symmetrical triangle, a trader would expect the price to break to the upside.  

## What Is Technical Analysis?

Technical analysis is a trading strategy that relies on charting the past performance of a stock or other asset to predict its future price movements. This strategy uses tools and techniques to evaluate historical data, including asset prices and trading volumes. Some of the tools used include charts and graphs such as triangles.

## How Do Triangles Work in Technical Analysis?

Triangles are chart patterns used in technical analysis. The patterns connect the beginning of the upper trendline to the beginning of the lower line. The upper line connects the highs while the lower line connects the lows in that security.

## Are Triangle Patterns Bullish or Bearish?

That depends on the type of triangle. Ascending triangles tend to be bullish as they indicate the continuation of an upward trend. In some cases, they may point to the reversal of a downtrend.

A descending triangle is bearish. That's because it points to the continuation of a downtrend or the reversal of an uptrend.

## The Bottom Line

Triangle chart patterns are a valuable tool in technical analysis because they can help traders identify potential trend continuations or reversals. They play a significant role in making informed trading decisions.

Triangle chart patterns come in three main types—ascending, descending, and symmetrical—and offer different insights and bullish or bearish signals, depending on their formation.

When using triangle chart patterns, traders wait for breakout confirmation to make trading decisions. This cautious approach can help mitigate the risks of false signals.

Markets can be unpredictable, despite trading tools like triangle chart patterns. No technical analysis is foolproof, so it should be used as part of a broader trading strategy. You should continually practice and refine your technical analysis skills, since understanding and applying chart patterns requires experience, vigilance, and patience.