Triangles are a form of consolidation or range pattern where markets just drift sideways for an extended period of time. Triangles can come in many different forms and shapes. In contrast to the other patterns, triangles–especially symmetrical ones–are neutral, and they are neither trend continuation nor reversal patterns. They simply show that the market is in a contracting stage without conviction and directional impulses. The signal on triangles occur once price leaves the pattern. Often, those breakout points come with high momentum candles and moves. The tighter and longer a consolidation in a triangle lasts, the stronger the breakout and the following trends.
