Chart patterns are perhaps one of the most well used technical analysis tool available to professional traders as well as online traders. Triangles are easy to recognize and apply. There are ascending, descending, and symmetrical triangles as well as wedges and flags. I personal combine them and call them all triangles. I believe triangles have no direction bias, they just alert us to a breakout and then what to expect when that breakout occurs.
Traders who follow the directional bias of the particular triangles will find they are disappointed as I show you in class, the predisposed direction signals are just about a 50% success ratio. What triangles do exceptionally well is give up a buy or sell opportunity as price breaks the support or resistance levels as price moves into the apex of the triangle. We can also set target points, stop losses and entry points.
By combining triangles with volume and using candlesticks to verify the breakout we can have a hugely successful trading scenario.