Triangle

The Triangle is a chart patterns indicator used in Skyrexio Strategy Builder for pattern recognition and reversal/continuation signals.

Introduction

The Triangle is a continuation chart pattern that signals potential LONG or SHORT opportunities depending on breakout direction. This pattern occurs when price moves between converging trend lines, creating a triangular shape that usually indicates continuation of the prevailing trend.

How Triangle Works

Triangle is a continuation chart pattern with specific characteristics:

• Converging trend lines - Upper and lower lines converge toward an apex • Three types - Ascending (bullish), descending (bearish), symmetrical (neutral) • Volume pattern - Typically decreases during formation, increases on breakout • Confirmation requirement - Pattern confirmed when price breaks above or below triangle • Target calculation - Triangle height added to or subtracted from breakout point

Pattern Psychology: The pattern represents a period of consolidation where buyers and sellers are in equilibrium. The converging lines show decreasing volatility and indecision. The eventual breakout demonstrates which side (buyers or sellers) gains control, typically continuing the prior trend direction.

Key Characteristics

Attribute
Details

Category

Chart Patterns

Type

Continuation Signal

Primary Use

Direction depends on breakout

Timeframe

All timeframes supported (1m to 1M)

Confirmation

Breakout direction, volume, trend context

Strategy Applications

🟢 LONG STRATEGY (Bullish Breakout)

Triangle generates LONG signals when price breaks above the upper trend line, especially in ascending triangles or upward breakouts from symmetrical triangles.

Base Entry Order (LONG)

Additional Entry Orders (LONG)

Take Profit Orders (LONG)

Stop Loss Orders (LONG)

🔴 SHORT STRATEGY (Bearish Breakout)

Triangle generates SHORT signals when price breaks below the lower trend line, especially in descending triangles or downward breakouts from symmetrical triangles.

Base Entry Order (SHORT)

Additional Entry Orders (SHORT)

Take Profit Orders (SHORT)

Stop Loss Orders (SHORT)

Advanced Strategy Combinations

Multi-Timeframe Triangle Analysis

Higher Timeframe Confirmation:

  • Daily: Triangle formation + trend context

  • 4H: Triangle pattern + EMA(21) direction

  • 1H: Breakout + Volume confirmation

Triangle Type Strategy

Ascending Triangle (Bullish Bias):

  • Horizontal resistance, rising support

  • Typically breaks upward

  • Use LONG-focused strategy

Descending Triangle (Bearish Bias):

  • Horizontal support, falling resistance

  • Typically breaks downward

  • Use SHORT-focused strategy

Symmetrical Triangle (Neutral):

  • Both lines converging equally

  • Breaks in direction of prior trend

  • Use trend-following strategy

Risk Management Guidelines

Position Sizing

Strategy Type
Position Size
Conditions

LONG Strategy

Standard

Upward breakout with volume

SHORT Strategy

Standard

Downward breakout with volume

Neutral Triangle

Reduced

Wait for clear breakout direction

Low Volume

Reduce size

Wait for volume confirmation

Pattern Reliability Factors

✅ Clear converging trend lines ✅ Multiple touches on each line ✅ Volume decreases during formation ✅ High volume on breakout

Best Practices

For Both Strategies

  1. Wait for breakout - Don't enter before clear direction

  2. Volume confirmation - Ensure high volume on breakout

  3. Trend context - Consider prior trend direction

  4. False breakout protection - Use stops inside triangle

Triangle Type Recognition

  1. Ascending - Bullish bias, expect upward breakout

  2. Descending - Bearish bias, expect downward breakout

  3. Symmetrical - Neutral, follow prior trend direction

  4. Volume pattern - Decreasing volume validates formation

Common Mistakes to Avoid

  • Early entry - Entering before confirmed breakout

  • Wrong direction - Fighting the breakout direction

  • Volume ignored - Trading without volume confirmation

  • False breakout - Not protecting against failed breakouts

Market Conditions Analysis

Market Type
LONG Strategy Effectiveness
SHORT Strategy Effectiveness

Uptrend

🟢 High (ascending triangles)

🟡 Medium (if breaks down)

Downtrend

🟡 Medium (if breaks up)

🟢 High (descending triangles)

Ranging

🟢 High (breakout potential)

🟢 High (breakout potential)

High Volatility

🟡 Medium (clear patterns)

🟡 Medium (clear patterns)

Low Volume

🔴 Low (wait for confirmation)

🔴 Low (wait for confirmation)

Related Patterns

Pattern
Relationship
Link

Rising Wedge

Similar converging lines

Rising Wedge

Falling Wedge

Similar converging lines

Falling Wedge

Rectangle

Continuation pattern

Rectangle

Bullish Flag

Continuation pattern

Bullish Flag

Conclusion

Triangle patterns are directionally neutral until breakout occurs. The strategy depends entirely on breakout direction - upward breakouts generate LONG signals while downward breakouts generate SHORT signals. Triangle type (ascending, descending, symmetrical) can provide directional bias.

Key Takeaways

  • STRATEGY DEPENDS ON: Breakout direction above or below triangle

  • ASCENDING TRIANGLES: Bullish bias, expect upward breakout

  • DESCENDING TRIANGLES: Bearish bias, expect downward breakout

  • ALWAYS: Confirm with Volume and protect against false breakouts

Success with Triangle patterns requires patience to wait for clear breakout direction and proper volume confirmation. The pattern's reliability increases when it appears with clear trend line definition and proper volume behavior.

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