Adam & Eve Tops
Anticipating  A Selloff
Andrews Pitch Fork
Bilateral Trade Setups
Bollinger Bands
Breakout Trading
Comp. Relative Strength
Cup With Handle
Cutting Loses
Daily Range
Exit Strategies
Exploring Market Physics
Dow and Elliot Waves
False Breakouts and Whipsaws
Flags and Pennants
5 Fibonacci Tricks
Finding Stocks
Fun With Fibonacci
Greed and Fear
Low Down On Bottoms
Market Timing
Head and Shoulders
Hell's Triangle
Momentum Cycles
Momentum Trading
Morning Gap Strategies
Moving Average Crossovers
Pattern Failure
Pitfalls Of Selling Short
Playing Failed Patterns
Point and Figure
Pull Back Day Trading
Selling Declines
Scanning Tips
Stage Analysis
Surviving Bear Markets
The Big W
Tale Of The Tape
Tape Reading
Time Trading
The Gap Primer
Trailing Stops
Trading Execution Zone
Triangle Trading
Trend Waves
Trend Direction and Timing
The Profitable Trader
Uncharted Territory
Williams %R
Wedges and Volume
20 Golden Rules
20 Rules For Trade Execution
20 Rules To Stop Losing Money
5 Wave Decline
3-D Trade Execution
Voodoo Trading




Triangle Trading


Classic triangle patterns don't fit easily into simple continuation or reversal trading strategies. Depending on their unique characteristics and position within the larger trend, they may foretell either event. While certain variations lean toward a favored breakout, the artistic symmetrical triangle has zero bias to either outcome as the formation suggests a state of perfect balance. Sharp traders closely watch the tug and pull within the developing pattern to identify the eventual winning play.
Trading power within well-formed triangles intensifies as they shift from range into breakout mode. When price finally surges into directional trend, a powerful vertical thrust quickly develops. While false moves occur at these apex points, triangles have a higher degree of reliability than most breakouts.
The angle of inclination defines this pattern's identity. Ascending triangles rise again and again toward a ceiling resistance level. Symmetrical triangles surge rhythmically across both sides of a horizontal axis dividing the formation right through the middle. The bearish descending triangle bounces weakly off bottom support.

High volatility marks the birth of new triangles. But as they approach their termination points, activity decreases sharply. This highlights a major risk in successfully trading these patterns. Should no ignition spark the expected breakout, the chart may flat-line, with price meandering endlessly in sideways motion. Traders caught in this phenomenon are advised to close positions and move to more fruitful endeavors.

WCOM Ascending Triangles - Buying pressure builds as price bounces repeatedly off a ceiling of horizontal resistance. A sharp thrust through this zone signals the breakout. Watch for any failure at the 3rd high, triggering a possible triple top reversal.
INTU Symmetrical Triangles - Noted for their central pivot axis, these patterns can yield powerful moves. Take no initial bias and examine buying at the 2nd and 3rd bottoms. The ability to hold well above the 1st low on good accumulation stokes the breakout fires.
IOM Descending Triangles - Rally power fades as the bull's energy is spent. An illusory double bottom invites one last batch of weak hands just before a sharp break signals major selling. If the bears fail, buy the 1st move above the trendline of the declining tops.