Three types.
- Ascending: flat resistance with rising lows; often breaks up.
- Descending: flat support with falling highs; often breaks down.
- Symmetrical: converging highs and lows; direction is open.
Trading the breakout.
Wait for a candle close outside the triangle, or a retest of the broken line. Measure the widest part of the triangle for a rough target.
Avoiding fakeouts.
Breakouts during low-liquidity hours or just before major news fail more often. Check the economic calendar first.
FAQ