Triangle

What is a 'Triangle'

A triangle is a technical analysis pattern created by drawing trendlines along a price range that gets narrower over time because of lower tops and higher bottoms. Variations of a triangle include ascending and descending triangles. Triangles are very similar to wedges and pennants.

Triangle

BREAKING DOWN 'Triangle'

Technical analysts see a breakout of this triangular pattern as either bullish (on a breakout above the upper line) or bearish (on a breakout below the lower line).

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RELATED FAQS
  1. What trading opportunities does a descending triangle offer?

    Learn about the trading opportunities that may be presented with a descending triangle chart pattern, including when traders ... Read Answer >>
  2. What is the breakout target price of an descending triangle?

    Find out more about the most common method traders use to place their target price following a breakout from a descending ... Read Answer >>
  3. Where do traders place orders when they identify descending triangles?

    Learn how to identify descending triangles and how traders use recognition of that chart pattern to place trades before the ... Read Answer >>
  4. What trading opportunities does an ascending triangle offer?

    Recognize and utilize an ascending triangle formation on a chart to determine trading opportunities that anticipate a market's ... Read Answer >>
  5. How do traders identify descending triangle patterns?

    Learn how to identify a descending triangle pattern on a security or index's price chart, and discover why traders consider ... Read Answer >>
  6. Where do traders place orders when they identify ascending triangles?

    Identify the formation of an ascending triangle pattern to enter a trade to take advantage of a continued uptrend or a market ... Read Answer >>
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