Triangle

Consolidation in a narrowing range - breakout usually continues the prior trend.

Triangles (ascending, descending, symmetrical) form as volatility drops. Ascending: flat top + rising bottom = demand building. Descending: falling top + flat bottom = supply pressing. Symmetrical: both sides narrow - direction decided by the breakout. Breakouts usually continue the prior trend (~65%). Target = base height added to breakout point.

In plain words

Price squeezes - swings get smaller until it finally breaks clearly up or down. Usually continues whatever it was doing before.

Example

BTC January 2024: 38k-42k triangle for 6 weeks -> breakout above 42k and move to 73k in 9 weeks.

Also known as: ascending triangle, descending triangle

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