Technical Trading Tips and Techniques by 
(Please click on the accompanying chart to enlarge.)
Triangles are relatively common patterns found on Forex charts. They represent price consolidations with progressively diminishing volatility, until breakout. Usually, triangles are larger chart formations (in comparison with smaller patterns like flags or pennants).
There are generally three different kinds of triangles - ascending, descending, and symmetrical. The example that you see on the accompanying chart, which is a current daily chart of GBP/CHF, is a pretty good example of a symmetrical triangle where both lines are converging together on angles. An ascending triangle, in contrast, has a horizontal top line with an ascending bottom line. A descending triangle has a horizontal bottom line with a descending top line.
Triangles are usually considered continuation patterns, but do not always fulfill this role. They can sometimes reverse a trend. In any event, similar to wedges or pennants, triangles are made to be broken. Any true break of a well-formed triangle should be considered a significant technical event, and presents a solid potential trading opportunity.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading
hi
thank for explaination about triangle .but may you explain me the diference between wedge and triangle.
regard
Hi Ely,
Yes, I will do a post about other patterns like wedges, rectangles, etc., soon. Thanks, Ely!
- James