What is Triangle (Technical Formation)?

Triangle technical formations are a critical technical analysis (TA) tool because they help traders determine the direction of bullish or bearish momentum and potential market reversals. Normally, there are three main triangle patterns: ascending, descending, and symmetrical triangles. Ascending triangles usually result in price increasing and breaking out, while descending triangles are often a bearish pattern that results in price breaking to the downside. Finally, symmetrical triangles can be a bearish or bullish pattern depending on the confirmation of the price above or below certain levels.