Let's understand the triangles on the chart. This is one of the most reliable patterns I see in technical analysis, and today I want to share how to read and trade them correctly.

I'll start by saying that a descending triangle is a pattern I especially like to catch. It's a bearish formation where there's a descending resistance line at the top and horizontal support at the bottom. You see, this indicates that sellers are exerting increasing pressure, and buyers can no longer bounce back as high. Every time the price tries to rise, it falls below the previous high. This is a classic sign of weakening.

When a descending triangle forms, I wait for the volume to start decreasing as it approaches the support line — this often signals a breakout. I open a short position exactly at the moment of support breakout, but only if the volume confirms this move. I place a stop-loss above the last resistance line. The main thing is not to catch false breakouts, especially when the volume is low.

Now, an ascending triangle is the opposite. Horizontal resistance at the top, rising support at the bottom. Here, buyers become more aggressive, bouncing higher each time. I catch this pattern in the middle of an uptrend. When the price breaks the horizontal resistance with increasing volume — that's when I open a long position. I set the stop below the last support line.

There is also a symmetrical triangle — a neutral pattern that can break in either direction. High points decrease, low points increase — the price is squeezing. This is consolidation before a big move. I don't rush to enter before a clear breakout because it's easy to catch a false signal. When a breakout occurs with volume — that's when I trade in the direction of the breakout.

And finally, an expanding triangle. This is a volatile pattern where the lines diverge further and further apart. Apparently, there's a struggle between buyers and sellers, and no one can win. Such patterns require caution because the price can jump sharply in either direction. You should only enter after a clear breakout and with a tight stop-loss.

General rules for all these patterns: I always look at volume, always use a stop-loss, and always check what trend I'm in. A descending triangle works best in a downtrend, an ascending one — in an uptrend. If the pattern forms against the trend, accuracy drops. Another important point — decreasing volume during pattern formation often indicates that a breakout is near. This is a signal to be prepared.

Triangles are not just pretty lines on a chart; they are real signals of what's happening between buyers and sellers. If you learn to see them and enter correctly, it can significantly improve your trading. The main thing — don't rush, wait for confirmation, and always protect your capital.