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TrianglesThere are different types of triangles when it comes to important candlestick formations. The first one is the most important: Symmetrical They mark a period of indecision - a period where supply and demand are equal and the future price movement is unclear. Sellers stop breakout attempts and breakdown attempts are stopped by buyers. Every high and low has to be closer together than the previous one — the range gets more and more narrow. In order to see it you have to draw a line above the highs and below the lows. During its development, the volume usually drops off. Eventually, this indecision is met with a resolve in the prior direction and usually explodes out of this formation (often on heavy volume.) Research has shown that symmetrical triangles overwhelmingly resolve themselves in the direction of the trend.
Note: Another formation you might have heard about is a wedge. They are very similar; this is why I won’t explain them in detail. Ascending and descending The ascending one is a variation of the symmetrical one. Ascending triangles are generally considered “bullish” and are most reliable when found in an uptrend! The top part appears flat, while the bottom part has an upward slant. In ascending triangles, the market becomes overbought and prices are turned back. Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back. Buying then resurfaces, although at a higher level than before. Prices eventually breakthrough the old highs and are propelled even higher as new buying comes in. As in the symmetrical case the breakout is generally accompanied by an increase in volume.
 
The descending triangle is generally considered “bearish” and is usually found in downtrends. Unlike the ascending version, this time the bottom part appears flat and the top part has a downward slant. Prices drop to a point where they are oversold. Tentative buying comes in at the lows, and prices perk up. The higher price however attracts more sellers and prices re-test the old lows. Buyers then once again tentatively re-enter the market. The better prices though, once again attract even more selling. Sellers are now in control and push through the old lows of this pattern. While the Previous buyers rush to sell their positions. Like the symmetrical and ascending triangles, volume tends to dry up during the formation of the pattern with an increase in volume on its resolve. That's it! I will now suggest you move on to the next chapter By clicking here to check out the cup and handle formation. 
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