Chart PatternsBeginner
A triangle is a chart pattern where price swings get smaller and the highs and lows form two trend lines that move towards each other. There are three main types: ascending (flat top, rising lows, usually bullish), descending (flat bottom, falling highs, usually bearish) and symmetrical (both lines sloping in, direction unclear). Traders watch for a breakout through one of the lines, ideally on rising volume, and often use the height of the widest part of the triangle to set a price target.
Related terms: Ascending Triangle Descending Triangle Symmetrical Triangle Pennant Wedge Breakout