Continuation Triangles
Overview
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.
Key Concepts
Ascending triangle: flat top resistance with rising support, Descending triangle: flat bottom support with falling resistance, Symmetrical triangle: converging trendlines with equal slope, Volume typically decreases during formation and spikes on breakout
Entry Signals
Breakout from the triangle on above-average volume, Retest of the broken trendline as new support/resistance, Divergence resolution on oscillators at breakout, Prior trend context (continuation bias)
Exit Signals
Target = height of the triangle base projected from breakout point, Stop just inside the triangle on the opposite side, Time-based invalidation: if no breakout by ~75% through the triangle, the pattern weakens
Best Timeframes
1H, 4H, Daily
Pro Tips
Triangles that form in the direction of the prior trend have a higher probability of breaking out in the trend direction. Volume contraction during formation is key — if volume stays high, the pattern may not be a triangle.
More Topics in This Category
Harami Patterns
A harami (Japanese for 'pregnant') is a two-candle pattern where a small candle is completely contained within the prior candle's body. A bullish harami appears in downtrends; a bearish harami in uptrends. Haramis signal fading momentum but require confirmation before trading.
Abandoned Baby Pattern
The abandoned baby is a rare three-candle reversal pattern considered one of the most reliable candlestick signals. It forms when a doji gaps away from the preceding candle and the following candle gaps in the opposite direction, leaving the doji isolated with gaps on both sides. The pattern indicates a dramatic shift in market sentiment where momentum completely reverses between sessions.
Three-Line Strike Patterns
The three-line strike is a four-candle pattern where three consecutive candles move in one direction, followed by a single large candle that engulfs all three. Despite appearing as a reversal, statistical analysis shows the bullish three-line strike actually has a high probability of continuing the prior uptrend, making it a continuation signal. The bearish variant behaves similarly as a continuation of the downtrend.
Doji & Spinning Tops
Doji and spinning top candles signal indecision between buyers and sellers. A doji has nearly identical open and close prices, while a spinning top has a small body with long wicks on both sides. These patterns are most significant at the end of extended trends where they can foreshadow reversals.