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
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.
Hammer & Hanging Man
The hammer and hanging man are single-candle patterns with small real bodies and long lower shadows (at least 2× the body). A hammer appears at the bottom of a downtrend (bullish), while a hanging man appears at the top of an uptrend (bearish). The long wick indicates that sellers pushed price down but buyers recaptured ground.
Piercing Line & Dark Cloud Cover
The piercing line is a two-candle bullish reversal pattern where a down candle is followed by an up candle that opens below the prior low and closes above the midpoint of the prior body. The dark cloud cover is its bearish counterpart — an up candle followed by a down candle that opens above the prior high and closes below the midpoint. Both patterns signal a potential shift in sentiment when they appear at key support or resistance levels.
Morning & Evening Star
The morning star is a three-candle bullish reversal: a large bearish candle, a small body candle (the star) that gaps down, and a large bullish candle that closes well into the first candle's body. The evening star is the bearish mirror. These are among the strongest candlestick reversal patterns.