Flags and Triangles

These patterns are characterized by a period of consolidation following an uptrend or downtrend. A flag looks like a rectangle, while triangle patterns come in various forms such as descending and symmetrical. Both are considered continuation patterns.

Symmetrical Triangle

A symmetrical triangle is a chart pattern that usually appears in the chart of a financial asset during a period of consolidation. It is characterized by two converging trendlines that form a triangle shape on the chart. One trendline is formed by a series of lower highs, and the other trendline is formed by a series of higher lows.

The pattern is called “symmetrical” because the two trendlines are evenly distributed and the triangle is symmetrical. The symmetrical triangle pattern is typically seen as a continuation pattern, meaning that it is expected to lead to a continuation of the trend that was in place before the triangle formed.

The symmetrical triangle pattern can be bullish or bearish, depending on the direction of the trend that preceded it. If the trend was bullish before the triangle formed, the pattern is considered bullish, and if the trend was bearish, the pattern is considered bearish.

When the price breaks out of the triangle pattern, it is usually a strong signal to traders that the trend is about to resume. The direction of the breakout will depend on the direction of the trend that preceded the triangle.

Symmetrical Expanding Triangle

The symmetrical expanding triangle pattern is a chart pattern that is formed by two trendlines that converge towards each other. The symmetrical expanding triangle pattern can be bullish or bearish. It typically forms during a trend and signals that the trend will continue. The upper trendline is formed by connecting a series of swing highs, while the lower trendline is formed by connecting a series of swing lows. As the pattern develops, the distance between the trendlines expands, indicating increased volatility. A breakout from the pattern typically occurs when the price exceeds one of the trendlines, signaling a continuation of the current trend.

Bullish Expanding Triangle

A Bullish Expanding Triangle is a chart pattern that is formed by a horizontal resistance level and an upward sloping support level that converge to a point, creating a triangle shape. This pattern typically forms during an uptrend, and is considered a bullish continuation pattern, indicating that the stock will likely continue to rise after the pattern completes. The price will often break out above the resistance level, and traders will often use this as a signal to buy the stock. However, it is important to note that like all chart patterns, the Bullish Expanding Triangle is not a guarantee of future performance and other technical and fundamental analysis should be used in conjunction with this pattern.

Bearish Expanding Triangle

A Bearish Expanding Triangle is a chart pattern that is formed by a horizontal support level and a downward sloping resistance level that converge to a point, creating a triangle shape. This pattern typically forms during a downtrend, and is considered a bearish continuation pattern, indicating that the stock will likely continue to fall after the pattern completes. The price will often break down below the support level, and traders will often use this as a signal to sell the stock. It’s important to note that like all chart patterns, the Bearish Expanding Triangle is not a guarantee of future performance and other technical and fundamental analysis should be used in conjunction with this pattern. Additionally, it’s worth noting that the bearish expanding triangle pattern is less reliable than other bearish patterns like head and shoulders or bearish flag patterns.


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