Triangle Candlestick Pattern Quick Reference Manual: Understand 4 Trading Signals in One Image

When trading in the crypto world, you must thoroughly understand triangular patterns. Whether you are a follower or a professional player, recognizing these 4 types of triangles can help you make an early layout.

Descending Triangle (Bearish Signal)

It looks like this: the top is a descending line, the bottom is a horizontal line, resembling a balloon being pressed down.

How to use: Once the support line is broken + volume increases = prepare to short. Set the stop loss above the recent high. Newbies are most likely to fall into a trap here - a false breakout with low volume will deceive you, so don't rush to enter a position.

Ascending Triangle (Bullish Signal)

Looking at it the other way around: the bottom is an upward line and the top is a horizontal line. Buyers are continuously supporting the price.

How to use: When the price breaks above the upper horizontal line + volume follows = buy signal. Set the stop loss below the nearest support line. This pattern is the most accurate in an uptrend.

Symmetrical Triangle (Bidirectional Preparation)

The most tangled one: both sides are narrowing, forming a compressed state. It may break upwards or fall downwards.

How to use: Don't guess the direction, wait for the breakout! Once you choose a side, open a position in the direction with high trading volume. Set your stop loss on the opposite side. The closer you get to the tip of the triangle, the more fierce the breakout.

Expand Triangle (High Volatility Warning)

Contrary to the usual trend: the two lines are getting farther apart, and the fluctuations are expanding. This usually occurs before extreme uncertainty or significant news.

How to use: This is the least stable, so proceed with caution. Act only after a breakout confirmation and set a wide stop-loss. A surge in trading volume is a signal.

4 Must-Know Skills

1. Volume Breakthrough: Decreasing volume + approaching the tip = a big move is coming.
2. Follow the Major Trend: Ascending triangles are valid in a bull market, while descending triangles are valid in a bear market.
3. Stop-loss cannot be saved: No matter what form it takes, stop-loss is the key.
4. False Breakouts are Like Ghosts: Breakouts with low trading volume are prone to backlash; at least wait for one candlestick to confirm.

The technical aspect is like this; the rest depends on mindset and money management.