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A triangle is a chart pattern, depicted by drawing trendlines along a converging price range, that connotes a pause in the prevailing trend. Technical analysts categorize triangles as continuation patterns. There are three potential triangle variations that can develop as price action carves out a holding pattern, namely ascending, descending, and symmetrical triangles.

Symmetrical Triangles

Symmetrical triangles are chart patterns that can appear in an uptrend or a downtrend and are characterized by a series of higher lows and lower highs. When the support trend line joining consecutive lows and the resistance trend line joining consecutive highs are drawn, they result in a convergence of two trend lines with a degree of symmetry.

In below chart, we can find that these symmetrical triangles indicate a period of indecision when the forces of supply and demand in the market are nearly equal. During these conditions attempts to push the price up are met with selling and attempts to push the price down are met with buying. There is also a tendency for volumes to drop off during the formation of this pattern. Eventually the price will break out of the triangle, usually this break out is accompanied by an increase in volume, and is usually in the direction of the preceding trend.

In a symmetrical triangle, a strong entry signal is given when the price breaks out of the triangle in the direction of the existing trend between 50-75% into the triangle. In other words, if the trend preceding the symmetrical triangle is an uptrend, the price should breakout to the top, and conversely for a downtrend.

Ascending Triangle

Ascending triangles are generally bullish in nature and are most reliable when they appear as a continuation pattern in an uptrend. Because of its shape, the pattern can also be referred to as a right-angle triangle. Two or more equal highs form a horizontal line at the top. Two or more rising troughs form an ascending trend line that converges on the horizontal line as it rises. Finally, it is formed. 

In these patterns, buyers slightly outnumber sellers. The market becomes overbought and prices start to drop. However, buyers then re-enters the market and prices are driven back up to the recent high, where selling