Triangle Pattern Trading Made Easy: Understand Four Strategies in One Chart

Recently, many people have been asking how to use the triangle pattern, so today I will speak frankly about it.

Descending Triangle = Bearish Signal The upper resistance line continues to move down, while the lower support line remains firm - sellers are accumulating strength. The golden point for shorting occurs when the support is broken; remember to check the trading volume for confirmation, otherwise it's easy to step on a landmine.

Ascending Triangle = Bullish Signal The support line below keeps rising, while the resistance line above is flat—buyers are ready to take action. Break through the resistance line with increased trading volume, and decisively go long. This pattern is the most reliable in an uptrend.

Symmetrical Triangle = Direction Undetermined Two lines are simultaneously contracting towards the center, indicating that the market is in a state of indecision. Once a breakout occurs (whether upwards or downwards), follow the direction, but wait for a real confirmation of the breakout before taking action—don't get caught in a false breakout.

Diffusion Triangle = High Risk Warning The two lines are getting further apart, and volatility is soaring. This phenomenon tends to occur in turbulent markets or before significant events, making it difficult to operate; it is recommended that beginners avoid it.

Three Core Tips

1. Trading volume is the validator - any breakout without volume is false.
2. Look at the trend background - a converging triangle in the same direction is much more reliable than one that diverges.
3. Stop-loss must be set - always prioritize risk management first.

By paying attention to these points, the triangle pattern can transform from an incomprehensible chart into a money-making tool.