Triangle Patterns: Ascending, Descending and Symmetrical Triangles Explained

Triangle patterns form when price moves into a narrowing range between two trendlines. They show buyers and sellers reaching a balance before the next big move. Triangles appear on Pakistan Stock Exchange, crypto and forex charts alike, and come in three main types.

Ascending triangle

A flat upper line (resistance) and a rising lower line (higher lows). Buyers keep stepping in at higher prices while sellers hold one level. It is generally seen as a bullish pattern, with a break above resistance as the key event.

Descending triangle

A flat lower line (support) and a falling upper line (lower highs). Sellers are becoming more aggressive. It is generally seen as bearish, with a break below support as the key event.

Symmetrical triangle

Lower highs and higher lows, so both lines converge. It shows indecision; the breakout can go either way, though it often follows the direction of the trend before the triangle formed.

What traders generally watch

• At least two touches on each line
• Volume often shrinking as the triangle narrows, then rising on the breakout (see volume in trading)
• A candle closing clearly outside the triangle, rather than a brief poke through
• Where the pattern would be proven wrong, for planning a stop loss

Triangle vs wedge

In a wedge, both lines slope the same way. In a triangle, they point in different directions, or one is flat. See all patterns in our chart patterns guide.

This article is for education only and is not investment advice. Trading shares, cryptocurrencies, forex and other markets involves risk, including the loss of capital.