🔺 Micro Course

Master Triangles & Wedges

Learn to identify ascending triangles, descending triangles, rising wedges, and falling wedges. Build on your trend line and channel skills to spot these powerful continuation and reversal patterns.

📐 Ascending Triangle Breakout
Flat Resistance
Rising Support
Price
BREAKOUT!

What You'll Learn

A complete guide to triangles and wedges — connecting trend lines and channels to form powerful chart patterns.

The Four Patterns

Triangles and wedges are formed when you draw two converging trend lines around price action. Unlike parallel channels where the lines never meet, these patterns have lines that eventually converge at an "apex" point — creating a squeeze that typically leads to a breakout.

🔗 Building on Previous Concepts

This lesson connects directly to what you've learned:

  • Trend Lines: Triangles and wedges use TWO trend lines — one for highs, one for lows
  • Parallel Channels: While channels have parallel lines, triangles/wedges have CONVERGING lines
  • Key Difference: Channels = price "highway" | Triangles/Wedges = price "funnel" leading to breakout

Triangles vs Wedges: What's the Difference?

🔺 Triangles

What defines a triangle pattern?

Click to reveal

Triangles have ONE horizontal line and ONE angled line. The horizontal line acts as clear support or resistance. They are typically CONTINUATION patterns (price continues its prior trend).

📐 Wedges

What defines a wedge pattern?

Click to reveal

Wedges have TWO angled lines that BOTH slope in the same direction (both up or both down). They are typically REVERSAL patterns — price breaks OPPOSITE to the wedge direction.

🎯 The Apex

Why does the apex matter?

Click to reveal

The apex is where the two lines would meet. Price usually breaks out BEFORE reaching the apex (typically 2/3 to 3/4 of the way). A breakout too close to the apex often lacks momentum.

The Four Key Patterns

📈

Ascending Triangle

Bullish Continuation

Flat resistance + rising support. Buyers are getting more aggressive (higher lows), testing the same ceiling repeatedly.

📈 Typically breaks UPWARD (bullish)
📉

Descending Triangle

Bearish Continuation

Falling resistance + flat support. Sellers are getting more aggressive (lower highs), testing the same floor repeatedly.

📉 Typically breaks DOWNWARD (bearish)
⬆️

Rising Wedge

Bearish Reversal

Both lines slope upward. Price is rising but momentum is weakening (lines converging). Often forms at the end of an uptrend.

📉 Typically breaks DOWNWARD (reversal)
⬇️

Falling Wedge

Bullish Reversal

Both lines slope downward. Price is falling but selling pressure is weakening (lines converging). Often forms at the end of a downtrend.

📈 Typically breaks UPWARD (reversal)

Quick Comparison

Pattern Upper Line Lower Line Type Breakout Direction
Ascending Triangle Flat (horizontal) Rising (ascending) Continuation ↑ Bullish
Descending Triangle Falling (descending) Flat (horizontal) Continuation ↓ Bearish
Rising Wedge Rising Rising (steeper) Reversal ↓ Bearish
Falling Wedge Falling (steeper) Falling Reversal ↑ Bullish

How to Draw Them

Drawing triangles and wedges uses the same trend line skills you've already learned — but now you're drawing TWO converging lines instead of parallel ones. Here's the step-by-step process.

🔗 From Channels to Triangles

Remember how channels use two parallel trend lines? Triangles and wedges are similar, but the lines CONVERGE instead of staying parallel. Think of it as a channel that's being "squeezed" from one or both sides.

1

Identify the Consolidation Zone

Look for an area where price is making a series of highs and lows that are compressing together. The range should be narrowing over time — this is the "squeeze" that precedes a breakout.

2

Draw the First Trend Line (Most Obvious)

Start with the line that's easier to identify. For ascending triangles, this is usually the flat resistance. For wedges, start with whichever line has the clearest touch points. You need at least 2 touches, ideally 3+.

3

Draw the Second Trend Line

Connect the opposite swing points. For triangles, this line will be angled while one stays flat. For wedges, both lines will angle in the same direction but at different rates (converging).

4

Verify the Pattern

Check that: (1) Both lines have at least 2 touches each, (2) The lines are clearly converging toward an apex, (3) Price is bouncing between the lines. If the lines are parallel, you have a channel, not a triangle/wedge.

5

Identify the Apex & Breakout Zone

Extend your lines to find where they would meet (the apex). Price typically breaks out 2/3 to 3/4 of the way to the apex. Mark this zone — it's where you'll watch for the breakout.

Drawing Rules

How many touches validate a pattern?

Each line needs at least 2 touches to be drawn, but 3+ touches on each line makes the pattern much more reliable. The more times price respects the boundary, the more significant the eventual breakout will be.

Should I connect wicks or bodies?

Generally, connect the wicks for the most accurate lines — they show where buyers/sellers actually stepped in. Some traders prefer bodies for "cleaner" patterns. The key is to be consistent — don't mix wicks and bodies on the same pattern.

What if a touch slightly breaks the line?

Minor wick violations are normal and don't invalidate the pattern — especially if the candle closes back inside. However, if the body closes outside the line with follow-through, the pattern may be breaking down (or breaking out early).

How do I tell a wedge from a channel?

Extend your lines forward. If they would eventually meet at an apex, you have a wedge (converging lines). If they stay the same distance apart, you have a channel (parallel lines). Wedges lead to breakouts; channels can continue indefinitely.

Trading Strategies

Now let's put it all together with actionable trading strategies for each pattern. Remember: triangles are typically continuation patterns, while wedges are typically reversal patterns.

📈

Trading the Ascending Triangle

Bullish breakout above flat resistance

ENTRY STOP TARGET
1
Wait for Breakout Above Flat Resistance

Enter when a candle CLOSES above the horizontal resistance line with strong momentum (ideally on higher volume).

2
Set Stop Loss Below Recent Swing Low

Place your stop below the last touch of the rising support line, or below the entire pattern for a wider stop.

3
Target = Pattern Height

Measure the height of the triangle (from flat resistance to the first low) and project it upward from the breakout point.

4
Alternative: Buy at Rising Support

More aggressive traders can buy bounces off the rising support line BEFORE the breakout, with stops below the line.

📉

Trading the Descending Triangle

Bearish breakdown below flat support

ENTRY
1
Wait for Breakdown Below Flat Support

Enter SHORT when a candle CLOSES below the horizontal support line with conviction (higher volume preferred).

2
Set Stop Loss Above Recent Swing High

Place your stop above the last touch of the falling resistance line, or above the entire pattern for safety.

3
Target = Pattern Height

Measure the height of the triangle and project it DOWNWARD from the breakdown point. This is your minimum target.

4
Alternative: Short at Falling Resistance

Aggressive traders can short bounces off the falling resistance line BEFORE the breakdown, with stops above the line.

⬆️

Trading the Rising Wedge

Bearish reversal — price breaks DOWN

SHORT
1
Wait for Breakdown Below Lower Line

Despite the upward slope, rising wedges typically break DOWN. Wait for a close below the lower support line.

2
Enter SHORT on the Breakdown

This is a REVERSAL pattern — you're trading against the prior trend. Enter short when the breakdown is confirmed.

3
Stop Loss Above Recent High or Upper Line

Place your stop above the last swing high inside the wedge. If price reclaims the wedge, the pattern has failed.

4
Target = Base of Wedge

Measure from the widest part (start) of the wedge. Project that distance downward from the breakdown point.

⬇️

Trading the Falling Wedge

Bullish reversal — price breaks UP

LONG
1
Wait for Breakout Above Upper Line

Despite the downward slope, falling wedges typically break UP. Wait for a close above the upper resistance line.

2
Enter LONG on the Breakout

This is a REVERSAL pattern — you're betting the downtrend is over. Enter long when the breakout is confirmed.

3
Stop Loss Below Recent Low or Lower Line

Place your stop below the last swing low inside the wedge. If price falls back into the wedge, exit the trade.

4
Target = Base of Wedge

Measure from the widest part (start) of the wedge. Project that distance upward from the breakout point.

Common Mistakes

Do This

  • Wait for the candle to CLOSE beyond the pattern before entering
  • Confirm with volume (breakouts should have higher volume)
  • Use the pattern height to set realistic targets
  • Place stops outside the pattern (not just at the line)
  • Look for patterns on higher timeframes for reliability
  • Remember: Triangles = continuation, Wedges = reversal (usually)

Avoid This

  • Entering before the breakout is confirmed (anticipating)
  • Trading patterns that are too close to the apex (weak moves)
  • Forcing patterns where the lines don't clearly fit
  • Ignoring the prior trend (context matters)
  • Using patterns on very short timeframes (noisy, unreliable)
  • Confusing wedges with channels (check if lines converge!)

Test Your Understanding

Question 1 of 6
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Quiz Complete! 🎉

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Pattern Checklist

Identified pattern type (ascending/descending triangle or rising/falling wedge)
Both trend lines have at least 2 touches each (3+ preferred)
Lines clearly converge toward an apex point
Price is between 2/3 and 3/4 of the way to apex (ideal breakout zone)
Waiting for candle to CLOSE beyond the pattern line
Volume confirms breakout (higher than average)
Stop loss placed outside the pattern
Target calculated using pattern height projection
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📚 Key Takeaways

Triangles have one horizontal line (flat support or resistance) and one angled line. They're typically continuation patterns.

Wedges have two angled lines that both slope the same direction. They're typically reversal patterns (break opposite the wedge direction).

Ascending triangles break UP (bullish). Descending triangles break DOWN (bearish).

Rising wedges break DOWN (bearish reversal). Falling wedges break UP (bullish reversal).

Wait for confirmation: The candle must CLOSE beyond the pattern line. Volume should increase on the breakout.

Target = Pattern Height: Measure the widest part of the pattern and project from the breakout point.

⚠️

Educational Disclaimer

This content is for educational purposes only and should not be considered financial advice. Trading involves substantial risk of loss. Always do your own research before making trading decisions.