All three types of Triangle Chart Patterns are used all the time in technical analysis, this is because they are very common occurrences in charts. When a current trend hits a bit of resistance, there is a good chance a triangle pattern will emerge before it continues on its way. This is because triangles show a tightening of support and resistance, until finally one breaks through. Symmetrical triangles are called that, because they form the shape of a symmetrical triangle. (Did I just point out the obvious?). The ascending and descending triangles will have one straight line and one angled line, to create the triangle shape. The straight line is on the top for ascending triangles, and on the bottom for descending triangles.

In a Symmetrical Triangle you will see the pattern show lower highs and higher lows, from these you should be able to draw support and resistance lines, that come together in the symmetrical triangle shape. As noted before the Ascending Triangle will have a straight top (resistance) line, and a an angled bottom (support) that is showing higher lows as the pattern continues. Likewise, the Descending Triangle will have a straight bottom (resistance) and an angled top line that is showing lower highs as the pattern continues. You need at least 4 points to make any of the triangle shapes (two tops and two bottoms). as the tops and bottoms get closer and closer together, one of them is eventually going to break out, and being a continuation pattern this is generally in the same direction as the chart was heading before it hit the resistance, you will also usually note an increase in volume at the breakout point.

figure 1: Bullish Symmetrical Triangle		figure 2: Bearish Symmetrical Triangle
figure 3: Ascending Triangle		figure 4: Descending Triangle

I find that the Triangle Chart Patterns being even more common then the Rectangle Chart Pattern could very well be the most used pattern that appears in the charting world, take a moment to look at Figures 5 and 6 which are examples of the Symmetrical Triangle and an Ascending Triangle that I easily found. You'll notice that they don't always follow the clean lines that were in Figures 1 through 4, but the pattern is there, and it reacted as we had predicted.

Figure 5: Real Example of Symmetrical Triangle Pattern, TSX: HGU, supplied by StockCharts.com

Figure 6: Real Example of Ascending Triangle Pattern, TSX: HGU, supplied by StockCharts.com

I hope the Triangle Chart Patterns will help you in your investment desicions. For more information on chart patterns and links to other chart pattern articles check out the article: Introduction To Chart Patterns

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