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
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
Entry: 1H breakout direction Target: Triangle height from breakout Stop: Inside triangle or opposite side
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
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
❌ Unclear trend line definition ❌ Few touches on lines ❌ High volume during formation ❌ Low volume on breakout
Best Practices
For Both Strategies
Wait for breakout - Don't enter before clear direction
Volume confirmation - Ensure high volume on breakout
Trend context - Consider prior trend direction
False breakout protection - Use stops inside triangle
Triangle Type Recognition
Ascending - Bullish bias, expect upward breakout
Descending - Bearish bias, expect downward breakout
Symmetrical - Neutral, follow prior trend direction
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
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
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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