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Wedges and Triangles - Technical Analysis

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The wedge formation occurs when the slope of price bar highs and lows consolidate to a point. The triangle formation occurs when there is a pause in the current trend.

Inclining WedgeInclining Wedge
The Inclining Wedge formation occurs when the slope of both lines is up with the lower line being steeper then the higher one.

To trade the Inclining Wedge, place a buy on a break up and out of the wedge or a sell order on a break down and out of the wedge. Inclining Wedges with a prior downtrend are anticipated to break down and out, rather than up and out.

Declining WedgeDeclining Wedge
The Declining Wedge formation occurs when the slope of both lines is down, the top line being steeper then the lower one. This formation is opposite the Inclining Wedge.

Trade the Declining Wedge the same as the Inclining Wedge. Declining Wedges with a prior uptrend are anticipated to break up and out, rather than down and out.

 

Symmetrical TriangleSymmetrical Triangle
A Symmetrical Triangle is likely to resume the previous trend after the pause forming the triangle. Notice the price bars form a perfect symmetrical triangle shape.

To trade a Symmetrical Triangle, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle.

 

Non-Symmetrical TriangleNon-Symmetrical Triangle
A Non-Symmetrical Triangle is exactly the same as the Symmetrical Triangle, except lacking symmetry. The formation resumes the previous trend when a break occurs.

Trade a Non-Symmetrical Triangle just as you would a Symmetrical Triangle.