Triangle patterns form when price compresses between converging trendlines. They often appear as pauses within a larger trend.
Ascending triangle
Flat resistance with rising lows. Buyers accept higher prices while sellers defend one ceiling. A breakout above resistance can continue the prior uptrend.
Descending triangle
Flat support with falling highs. Sellers press while buyers defend one floor. A breakdown below support can continue a downtrend.
Symmetrical triangle
Both sides converge. Energy builds until price exits one edge. Directional bias often follows the trend that preceded the triangle, but confirmation still matters.
Wedges
Rising wedges in uptrends and falling wedges in downtrends can signal exhaustion. They look like triangles but both lines slope the same way. Treat wedge breaks as potential reversal clues only with confirmation.
Execution checklist
- Identify the trend before the pattern.
- Wait for a close outside the pattern, not just a wick.
- Place stops inside the pattern or beyond the last swing.
- Size down on low volume Nordic names where false breaks are common.