Triangle

A triangle is a consolidation pattern that denotes a pause in the current trend. A triangle is represented by two converging trend lines within a narrow price range, resembling a triangular shape. After price moves out of the triangle (breakout/breakdown), and price resumes the previous trend prior to the pause, the triangle is then categorized as a continuation pattern. However, a breakout and hold above the triangle top (bullish), or a breakdown and hold below the triangle bottom (bearish), requires volume confirmation. Regardless of the consolidation pattern from which they emerge (triangles, rectangles, flags, pennants, etc.), increased volume activity is necessary to validate any breakout or breakdown.