# Forex School Intermediate Level: Triangle pattern

### Symmetrical Triangle

A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle.

A symmetrical triangle shows two converging trend lines, one ascending and the other descending, creating a sideways symmetrical triangle. At least four points are needed to form a symmetrical triangle. The point at which the two converging trend lines meet is called the apex. The formation occurs because prices are making both lower highs and higher lows. This is a form of price consolidation, and once this consolidation is over, you can expect a strong price movement. The longer the pattern takes to form, the stronger will be the breakout usually a price breakout near the apex is the strongest a symmetrical triangle is the only triangle pattern that can be a continuous pattern or a reversal pattern. The best breakouts occur ½ to ¾ of the way through the pattern.

Generally, a triangle pattern is considered to be a continuation or consolidation pattern. Sometimes, however, the formation marks a reversal of a trend.

Symmetrical triangles are generally considered neutral. From a time perspective, triangles are usually considered to be intermediate patterns. Usually, it takes longer time to form a triangle.

A symmetrical triangle pattern is relatively easy to identify. In addition, triangle patterns can be quite reliable to trade with very low failure rates. There is a caution concerning trading these patterns a triangle pattern can be either continuation or reversal patterns. Typically, they are continuation patterns.

Symmetrical triangles can form in trends, but their sheer size will often neutralize whatever momentum existed when the pattern first started to form. So when an extremely large pattern forms one can never be sure which way it will break until it actually happens.

### Ascending Triangle

An Ascending triangle or the flat-top triangle has two converging trend lines just like the symmetrical triangle. However, in an ascending triangle, the lower trend line is rising while the upper trend line is horizontal. The point at which the two converging lines meet is called the apex. This pattern happens when the lows are making higher lowsr but the peaks (highs) are maintaining price resistance level. This pattern is relatively easy to spot on a chart and it has a low failure rate.

An Ascending Triangle is usually considered bullish and is most often a continuation pattern where the uptrend continues after the pattern is complete  but also can be found in a reversal pattern when a downtrend reverses.

### Descending Triangle

A descending triangle has two converging trend lines. The bottom trend line is a horizontal and the top trend line slopes downward. The pattern illustrates the lows occurring at a constant price level – resistance, and highs are making lower highs. The point at which the two converging lines meet is called the apex. Near the apex, the price will break down from the horizontal line.

First, when the bottom points are connected, they appear flat and form a horizontal line in the triangle. The top part of the triangle forms a downward sloping line.

As the price enters the bottom area of the pattern, selling is exhausted and buyers step in and start buying(see also what are indicators). This causes the rise in share price.

As the price reaches its high in the pattern, sellers take control and push the price lower once again, where selling is once again exhausted and buyers step in. Each time buyers step in, they do so with less conviction forming lower highs in the pattern where sellers take control and push the price lower again.

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