Triangular chart patterns can either be symmetrical, ascending or descending. They are formed by converging support and resistance levels.
A Symmetrical Triangle is formed by the convergence of a descending resistance line and an ascending support line. It is usually a sign of trend continuation, reflecting a period of price consolidation before the price resumes moving in its prior direction.
As depicted in the chart above, price is seen to move between resistance and support levels. If the Symmetrical Triangle is preceded by a downward trend, the price is likely to break below the ascending support line and move downward. If, however, the pattern succeeds an uptrend, the price is likely to break above the descending resistance line and rise further.
The Ascending Triangle is a bullish pattern formed by a flat resistance line and an ascending support line. Price movement is contained within the resistance and support levels, until it breaks past the resistance line and moves upward.
The Ascending Triangle is usually a trend continuation pattern that is spotted during uptrends, yet its formation during a downtrend is also likely.
As opposed to the Ascending Triangle, which is a bullish pattern, the Descending Triangle is bearish and usually spotted during downtrends. It is formed by a descending resistance line and a flat support line, with price movement confined within these two levels before usually breaking below the support level to fall further.
As a chart pattern usually formed during downtrends, the Descending Triangle is generally considered to point towards trend continuation, yet it is also likely to be formed during uptrends.