Triangles: Symmetrical, Ascending and Descending
A triangle is a compression of range in which each successive extreme sits closer to the last. The figure speaks about accumulation, not direction: the side of the exit is not known in advance.
Three kinds and what they mean
Symmetrical: both boundaries converge toward each other, highs falling and lows rising — equilibrium. Ascending: horizontal resistance above and rising lows below, buyers pressing the level. Descending: horizontal support and falling highs, sellers pressing. The asymmetrical types hint at the likely side of the exit; the symmetrical one does not.
Why compression precedes movement
Inside a triangle amplitude falls while pending orders accumulate on both sides of the converging boundaries. Volatility is cyclical: periods of compression alternate with periods of expansion. When price exits a boundary, the triggering of those accumulated orders amplifies the move — hence the characteristic sharp exit after a long fade.
How to trade the exit
Entry on a close beyond the boundary, stop behind the opposite side or behind the last extreme inside the figure. The second option produces a tighter stop as price approaches the apex. The target is usually the height of the triangle at its widest, projected from the break.
The main mistake: guessing the side
A symmetrical triangle tempts traders to predict the exit from small details — the number of touches, volume, slope. There is no reliable method. It is more sensible to prepare a plan for both outcomes and act on confirmation, giving priority to the higher-timeframe trend where one is evident. And remember false breaks: near converging boundaries they are especially frequent.
We deliberately publish no measurement for this figure. Its marking cannot be formalised unambiguously, and any detection algorithm would reflect our arbitrary thresholds rather than a property of the market. Where the definition is strict — as with the inside bar or engulfing — we test the pattern on data and publish the result. Here it is more honest to say there is nothing to test.
This material is educational and is not individual investment advice. Trading forex carries the risk of losing capital.
Frequently asked questions
How does an ascending triangle differ from a descending one?
By the shape of the boundaries. An ascending triangle has horizontal resistance above and rising lows; a descending one has horizontal support below and falling highs. The first is associated with buying pressure, the second with selling pressure.
Can the exit from a symmetrical triangle be predicted?
Not reliably. A symmetrical triangle describes equilibrium and contains no directional information. It is more practical to prepare for both outcomes and enter on confirmation beyond a boundary.
Where does a triangle end?
At the apex where the boundaries converge. The closer to it, the less room remains inside the figure and the tighter the stop — but the more frequent the false pokes through both boundaries.
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