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
Shooting Star
The shooting star is a bearish reversal candle with a small body near the low and a long upper shadow (at least 2× the body). It appears at the top of uptrends and signals that buyers pushed price higher but sellers took control. It is the inverted version of the hammer.
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.
Three White Soldiers / Black Crows
Three white soldiers are three consecutive large bullish candles with progressively higher closes, each opening within the prior candle's body. Three black crows are the bearish equivalent. These patterns signal strong momentum shifts and conviction from buyers (soldiers) or sellers (crows).