CHART EXAMPLES OF ASCENDING TRIANGLE PATTERNS / COMMODITIES
ASCENDING TRIANGLE IN AN UPTREND (BULLISH)
Ascending triangle in an uptrend. Volume falls off during the formation, picks up and then expands on the breakout and ensuing upmove.
- Triangle Patterns
Some traders refer to triangles as “coils' because the trading action gets tighter and tighter until the market breaks out suddenly and powerfully.
Triangle Patterns
There are three types of triangles: symmetrical, ascending and descending.
Triangle patterns usually form part way through a strongly trending move and represent a congestive phase in the marketplace. These patterns are important because they are typically followed by sharp increases or declines in price.
Triangle Patterns can be broken down into three categories: The ascending triangle, the descending triangle, and the symmetrical triangle.
Triangle patterns are usually susceptible to definite and dependable analysis, with the proviso that the investor must wait for a reliable, as opposed to a premature, breakout.
Is volume important in a symmetrical triangle pattern?
Triangle Patterns
Reversal Patterns (Tops And Bottoms)
Chart Patterns
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Symmetrical triangle patterns can be found in almost any market and any time frame. They normally signify some indecision in the market and as the pattern develops it is common to see a decrease in volume.
The Ascending Triangle patterns do not vary in their development because they need at least 2 higher lows and 2 equal highs.
Weekly Symmetric Triangle Patterns Screener
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Unlike the other triangle patterns, the expanding triangle is a reversal pattern. It is rare to find it during a continuation phase, and it certainly doesn't signify a period of consolidation.
Symmetrical triangle patterns are a form of continuation pattern, which result in low risk investment opportunities.
Identifying triangle patterns allows for trading opportunity during formation and after a breakout from the pattern. Uncertainty is the basis or reason behind why each rally and each sell off has less market commitment.
Common continuation patterns include flags and pennants, and the various triangle patterns, namely the symmetrical triangles, ascending triangles and descending triangles.
The Descending Triangle is viewed as being more bearish than the regular Triangle patterns. When a Descending Triangle is formed, lower lows are being made (bearish sign) and quite often, lower highs are being made (generally seen as bearish).
Note: It is common for closely correlated currency pairs (e.g. EUR/USD and USD/CHF) to display triangle patterns at the same time. If one of the related currency pairs completes a triangle the other pair is likely to do the same.
Falling Wedge Chart Pattern
This is a bullish continuation pattern which is similar to triangle patterns made up of converging support and resistance trend lines and narrowing price ranges.
Another example is shown by RADN which formed two separate Symmetric Triangle patterns in November and December of 2003 before moving higher.
This is especially true with triangle patterns. In this case we reported the triangle because the last move was so well pronounced, creating an obvious triangle shape.
Eventually, the stock price is expected to have an accelerated breakout once the stock breaks above the flat highs. Note that many times in these triangle patterns, volume will die down as the pattern forms but accelerates once the breakout occurs.
 See also: Patterns, Pattern, Triangle, Chart, Trend
  
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