I've noticed that many beginners in trading often overlook one of the most reliable technical analysis tools — triangle patterns. Although they look simple, when used correctly, they can provide very accurate signals about price movements. I want to share my understanding of the four main types of triangles that I regularly use in my trading.

I'll start with the descending triangle — this is a bearish pattern that I often see before a price drop. It forms simply: a horizontal support line at the bottom and a descending resistance line at the top. The essence is that each time the price tries to rise, it encounters resistance lower and lower. Seller pressure increases, and eventually, a support breakout occurs.

When I see such a pattern, I wait for the moment when the price breaks the horizontal support with good volume — this is a signal to open a short position. An important point: volume should increase; otherwise, it could be a false breakout. I close the position when the price finds a new support level or shows signs of reversal. I place a stop-loss above the last resistance line. This pattern is especially effective within a clear downtrend, where volume decreases as it approaches support.

The ascending triangle is the complete opposite. It’s a bullish pattern that often appears in the middle of an uptrend. Here, there is a horizontal resistance line at the top and an ascending support line at the bottom. Each time the price approaches resistance higher, but cannot break it, while each bounce off support occurs higher than the previous one. This indicates increasing buying pressure.

Trading this pattern is simple: I wait for a breakout of the horizontal resistance with increased volume, then open a buy. I close at the new resistance level or when the price is overbought. I place a stop-loss below the last support. This pattern is ideal for trading during an existing uptrend.

Now, about the symmetrical triangle — this is where things get more interesting. It forms when the resistance line slopes downward, and the support line slopes upward simultaneously. This is a neutral consolidation pattern, and the price can break out either upward or downward, depending on who is stronger — buyers or sellers. Such a triangle in trading requires patience: I wait for a clear breakout with volume, then open a position in the direction of the breakout. If it breaks upward — I buy; if downward — I sell. I place a stop-loss on the opposite side of the last line.

The most unpredictable of all is the expanding triangle. The support and resistance lines diverge in opposite directions, showing increasing volatility. It usually forms during a significant imbalance of forces between buyers and sellers. I work with this pattern more cautiously, as volatility can be extreme. I open a position after the breakout but with a stricter stop-loss — I place it beyond the farthest point of the pattern. These triangles often appear in volatile markets or when important news is released.

What I’ve learned from practice: volume is king. An increase in volume after a breakout strengthens the signal. The higher the volume, the greater the likelihood of a significant move. These patterns work best when I see them within a clear trend. Descending and ascending triangles are most accurate in their respective trends.

Risk management is fundamental. Stop-loss is mandatory. You need to protect capital from unexpected movements, especially when working with expanding triangles. Understanding these four main pattern types significantly improves trading accuracy.

Currently, I see interesting movements on the charts for SUI, BONK, and FLOKI. It’s worth watching for triangle formations on these assets — there could be good trading opportunities on Gate.