I've long wanted to understand chart patterns that help predict price movements. It turns out that the most useful ones are triangles. Let me share what I've learned about each of them and how they can be used in trading.

Let's start with the descending triangle. This is a bearish pattern formed by a horizontal support line at the bottom and a descending resistance line at the top. When you see this pattern, it indicates that sellers are putting downward pressure on the price. The horizontal support is a level that the price often tests but struggles to break through. Meanwhile, the resistance line keeps getting lower, showing that buyers are weakening. When the price breaks support with good volume, it's a sell signal. The key is to wait for confirmation with volume; otherwise, you might catch a false breakout. It's best to place your stop-loss above the last resistance line. By the way, this pattern works better when volume decreases as the price approaches support—that suggests buyers are becoming exhausted.

The opposite is the ascending triangle. This is a bullish pattern with a horizontal resistance line at the top and an upward-sloping support line at the bottom. It usually appears in the middle of an uptrend and indicates that buyers are strengthening their pressure. When the price breaks the horizontal resistance on increasing volume, it's a buy signal. You can close your position when the price reaches a new resistance zone or shows signs of overbought conditions. Place your stop below the last support line. This pattern is ideal for trading during an existing uptrend.

Now, the symmetrical triangle is the most interesting pattern. It’s neutral because it can break out either upward or downward. It forms when the resistance line slopes down while the support line slopes up simultaneously—creating a squeeze. Prices move with lower highs and higher lows. The main rule is not to enter until a clear breakout occurs. When the breakout happens with good volume, open a position in the direction of the move. If it breaks upward, buy; if downward, sell. Decreasing volume during the formation of the triangle often signals an imminent breakout.

There’s also the expanding triangle—a rare pattern indicating increasing volatility. Here, support and resistance lines diverge in opposite directions, signaling market instability. These triangles usually appear in volatile markets or before major news releases. Be cautious with this pattern—enter a position only after a clear breakout. Place your stop-loss beyond the furthest point of the pattern to protect against sharp moves.

What’s important to remember when working with all these patterns? First, volume is king. An increase in volume after a breakout confirms the signal and increases the likelihood of a significant move. Second, look at the previous trend. These patterns are much more reliable when they appear within a clear trend. Ascending triangles work better in uptrends, descending ones in downtrends. Third, always use a stop-loss—this is a fundamental risk management rule that protects your capital from unexpected movements.

My advice: study these patterns across different timeframes, practice identifying them on historical data, and only then apply them in real trading. Understanding the characteristics of each triangle really helps improve technical analysis accuracy and makes trading more profitable.