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)

Base Order Condition: Triangle bullish breakout
First Condition: Triangle
Timeframe: 1H

Additional Confirmation:
First Condition: Close Price
Timeframe: 1H  
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H

Additional Entry Orders (LONG)

Additional Entry 1: Pattern confirmation with momentum
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 55

OR

Additional Entry 2: Volume confirmation
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Take Profit Orders (LONG)

Rule 1: Exit condition - Triangle target reached
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H

OR

Rule 2: Exit condition - Overbought warning
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 75

OR

Rule 3: Exit condition - Volume declining
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Stop Loss Orders (LONG)

Rule 1: Stop loss - False breakout (back inside triangle)
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H

OR

Rule 2: Stop loss - MACD bearish divergence
First Condition: MACD Line
Timeframe: 1H
Operator: Cross Below
Second Condition: MACD Signal Line
Timeframe: 1H

OR

Rule 3: Stop loss - Volume pattern fails
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

🔴 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)

Base Order Condition: Triangle bearish breakout
First Condition: Triangle
Timeframe: 1H

Additional Confirmation:
First Condition: Close Price
Timeframe: 1H  
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H

Additional Entry Orders (SHORT)

Additional Entry 1: Pattern confirmation with momentum
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 45

OR

Additional Entry 2: Volume confirmation
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Take Profit Orders (SHORT)

Rule 1: Exit condition - Triangle target reached
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H

OR

Rule 2: Exit condition - Oversold warning
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 25

OR

Rule 3: Exit condition - Volume declining
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Stop Loss Orders (SHORT)

Rule 1: Stop loss - False breakout (back inside triangle)
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H

OR

Rule 2: Stop loss - MACD bullish divergence
First Condition: MACD Line
Timeframe: 1H
Operator: Cross Above
Second Condition: MACD Signal Line
Timeframe: 1H

OR

Rule 3: Stop loss - Volume pattern fails
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Advanced Strategy Combinations

Multi-Timeframe Triangle Analysis

Setup

Higher Timeframe Confirmation:

• Daily: Triangle formation + trend context

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

• 1H: Breakout + Volume confirmation

Execution

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

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

High Reliability

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

Low Reliability

❌ Unclear trend line definition ❌ Few touches on lines ❌ High volume during formation ❌ Low 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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