Triangles are patterns formed by converging trend lines meeting at a single point, showing indecision in the market. There are three main types: ascending, descending, and symmetrical triangles. Triangles can indicate continuation or reversal of the pre-existing trend. Volume is generally low inside the triangle and increases at the breakout. Traders watch for breakouts of the trend lines and aim to enter positions in the direction of the breakout. Stop losses are placed outside the pattern to limit risk. Patterns like triangles can provide insight into market behavior but may not always work as expected.

1. Using Triangles- in Technical
Analysis
By
Sangamesh.K.S

2. Index
• What are triangles & why they are formed?
• Types of Triangles
• How to trade triangles?
• Placing Stop-Loss
• Strategies for trading triangles
• set price targets for triangles
• EWT’s perspective of triangles
• Using indicators & triangles
• Do patterns really work?
• Sleeping Triangles (An research and findings)

3. What are Triangles?
Triangles are the patterns formed when upper
and lower price level collide (converging trend
lines) at a single point called Apex/cardle.

4. Facts about triangles
• Triangles can be best described as horizontal
trading patterns.
• As the market continues to trade in a sideways
pattern, the range of trading narrows, and the
point of the triangle is formed.
• The triangle shows losing interest in an
issue, both from the buy side as well as the sell
side: the supply line (support) diminishes to meet
the demand.

5. Contd.
• They have a tendency to repeat again and
again.
• Triangles indicates its direction before it give
you a breakout.

6. Nature of Triangle
• They consist of
 Trend Line
 Major Support/ Resistance
• Volumes will be low before breakout; Volumes
kick high after breakout.
• Triangle speak its direction (Bullish/Bearish)
• Price never touch the cardle/Apex.

7. When they are formed?
• After a impulse wave; Triangles are corrective
wave(As per wave)
• When market start to move sideways.
• Range bound Market; Triangles are
anticipation of breaking S/R

8. Continuation Vs Reversal
• As per pattern it is Continuation
• As per EWT it is Reversal.

9. Types of Triangles
• Ascending triangle
• Descending triangle
• Symmetrical triangle
– Others

10. Triangles and parts of Triangles

11. Trading Ascending Triangle

13. An example where
an Ascending
triangle failed to
give a bullish
breakout!!!

14. Trading Descending Triangle

17. Trading Symmetrical Triangle

19. Expanding Triangles
• These Expanding triangles are the
inverse(mirror image) of Regular Triangles
• The volume in the expanding triangles
increase
• Hear trading within the triangle can be
profitable.

21. Indicators and You
• MACD
• RSI
• ADX etc
• “It isn’t important which indicator is the best;
but you need to know your indicator”
• Tips: Keep an oscillator indicator and a moving
average indicator. And keep experimenting to
know more.

22. Stop-Loss
• 2% or 5% Stop Loss
• ATR
• Pivot points
And More
• Fib Levels
• Neckline
• Trend line
Before placing your stops. Keep an eye on “Risk” and “Volatility”

23. Premature Breakouts
• They are the violation of Support/Resistance
and Trend-line.
• They stand as a road map for traders.

24. What we can understand from a with
Premature breakouts?
– We can predict the breakout( Bullish/ Bearish)
• TIP: Stay away from the stock if the stock is showing
violation in both upper and lower levels. Look for
breakout for trading; They are the only reliable source

25. Triangles repeat again and again

26. Measuring Triangle
There are 2 techniques adopted to measure the
targets for triangle
• Parallel trend-line method
• Fibonacci Method

27. Elliott Wave Theory
It consist of
• Impulse wave
• Corrective wave
 Zig-zag Correction
 Flat Correction

28. Zig-Zag Correction

29. Flat Correction

30. EWT’s Perspective

31. What we learn from Elliott’s wave?

32. Do Patterns Work?
Yes, Patterns work
Really?
NO

33. Why we think in Patterns?
• Your pattern is based on our decision
• Your decision is based on your thinking
• Your thinking is based on your recognition.

34. Sleeping Triangle