I've been doing technical analysis for several years and have noticed that the triangle pattern on a chart is one of the most reliable tools for predicting price movement. I want to share how I interpret these patterns and what results they can produce.

I divide triangles into four main types, and each indicates something different. I'll start with the descending triangle — this is when the upper boundary is falling, and the lower boundary remains horizontal. See how the price can't rise above a certain level each time but stays steady at the bottom? That's a bearish signal. Selling pressure is increasing, and when a support break occurs, the price usually moves downward. The key is to wait for confirmation with volume; otherwise, you risk catching a false signal.

The ascending triangle is the opposite. The lower line is rising, and the upper line is static. This is a bullish pattern often found in the middle of an uptrend. Buyers are pushing upward, and when the price breaks the upper level with good volume, it's a signal to buy. I place my stop below the last support level.

The symmetrical triangle is a consolidation. The upper line is falling, the lower line is rising, and they converge at a point. The price doesn't know which way to go. The main rule here is: don't enter until a breakout occurs. When it breaks upward, look for a buy; downward, look for a sell. Decreasing volume before a breakout often indicates that a sharp move is imminent.

The fourth type is the expanding triangle. This is a rare pattern where the lines diverge in different directions. Volatility increases, and the market is unstable. Entering here requires caution because movements are unpredictable. I set my stop-loss further away to avoid being stopped out by noise.

When working with any triangle pattern in trading, remember three things. First — volume. A breakout without volume isn't a true breakout; it's a trap. Second — trend context. An ascending triangle in an uptrend works much better than in a sideways market. Third — risk management. I always set a stop-loss, even if the signal seems very strong.

The triangle pattern in trading isn't a cure-all, but if you learn to recognize these patterns and confirm them with volume, your trading accuracy will significantly improve. The main thing is not to rush into entries before a clear breakout and always follow risk management rules.