Definition
A pattern where price swings get smaller and squeeze toward a point, drawn with two trendlines that converge.
The story
In an ascending triangle the ceiling stays flat while the dips rise. In a descending triangle the floor stays flat while the peaks fall. In a symmetrical triangle both lines slope toward each other. In each case, the swings are tightening, and traders watch which side price breaks out of.
Why you'll see it
Triangles are a common way commentary describes a market that's coiling, with its swings narrowing.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms