Triangle and wedge patterns

An ascending triangle has a flat resistance on top and rising lows below, and is usually read as bullish. A descending triangle has flat support and falling highs, usually read as bearish. A symmetrical triangle has falling highs and rising lows and is neutral until it breaks. Wedges differ in that both lines slope the same way: a rising wedge, with highs and lows both climbing but converging, often resolves downward, and a falling wedge often resolves upward.

These formations are common in crypto because long consolidations after big moves are frequent. Traders draw the lines, wait for a close outside them and project the height of the widest part of the pattern from the breakout point as a target.

Breakouts from triangles are often false at first, and the direction of a symmetrical triangle cannot be known in advance. Patterns drawn on few touches or on illiquid tokens are less reliable, and many triangles simply fade into sideways ranges.