I want to share my breakdown of the main triangular patterns in technical analysis. These are some of the most useful formations that I regularly use when trading. Let’s go through each one in more detail.

Let’s start with the descending triangle—it’s a bearish pattern formed by a horizontal support line at the bottom and a descending resistance line at the top. Do you see it? That means sellers are applying increasing pressure, and a breakdown below support is likely. Horizontal support is often tested, but it’s difficult to break through. Meanwhile, the resistance line slopes downward with every attempt by the price to move higher. When the price breaks support with increasing volume, that’s a sell signal. You should close your position either when a new support level is reached or if signs of a reversal appear. I place my stop-loss above the last resistance line. The main thing is to be careful about false breakouts, especially on low volumes. The descending triangle works most accurately when volume decreases as the price approaches support.

Now about the ascending triangle—this is a classic bullish triangle that I often see in uptrends. There’s a horizontal resistance line at the top and an ascending support line at the bottom. This shows that buyers are becoming more and more active. Every time the price tries to break through resistance, it encounters an obstacle, but the attempts continue. Buying pressure is increasing, as seen by the rising support line. When the price breaks above horizontal resistance with strong volume, that’s a buy signal. The position is closed when new resistance levels or overbought zones are reached. I set my stop-loss below the last support line. This bullish triangle is ideal for trading within the existing uptrend. If you see volume declining as the price approaches the top, it could signal an upcoming breakout.

The symmetrical triangle is a neutral pattern where the resistance line slopes downward and the support line slopes upward symmetrically. It can break either upward or downward—it all depends on which side is stronger. It forms during consolidation, when prices move with lower highs and higher lows. An upward breakout is a bullish signal, and a downward breakout is a bearish one. You should enter only after a clear breakout with strong volume. If it breaks upward, I open a buy; if it breaks downward, I open a sell. I close the position when targets are reached or if signs of a reversal appear. I place my stop-loss on the opposite side of the last line. The main rule is don’t rush to enter before the breakout. Decreasing volume during formation can indicate an imminent breakout.

The expanding triangle is a completely different story. Here, the support and resistance lines diverge in opposite directions, showing increasing volatility. This is a sign of instability and a potential reversal. It’s usually formed when there’s a large imbalance between buyers and sellers. Enter after the line breaks, but you need to be especially cautious—these patterns are unpredictable. I close the position when targets are reached or if the pattern loses momentum. I place my stop-loss beyond the furthest point of the pattern. Watch out for heightened volatility. Expanding triangles often appear in volatile markets or around major news events.

As for the general rules for all these patterns: volume is key. An increase in volume after a breakout strengthens the signal. The higher the volume, the higher the likelihood of a significant price move. Second, look at the previous trend. Patterns work more accurately when they’re identified within a clear trend. Ascending and descending triangles work best in their respective trends. And third, always use a stop-loss. This is critical for protecting your capital from unexpected moves. Understanding these patterns can significantly improve your accuracy in technical analysis. Right now on Gate, you can track these patterns across different assets, including SUI, BONK, and FLOKI. Experiment, study, and you’ll find your own approach to trading based on these signals.