Pipruit: Oh, again, so many rules, how could I remember all of them? Commander in Pips: In fact they are quite the same as with other patterns. You should understand just the major principle. Pipruit: Is it possible at all? Commander in Pips: Sure, it’s not so hard – just reread what we’ve talked about wedge trading and you’ll see many common things. Pipruit: Well, I’ll try if you say that… Commander in Pips: Here is an example of a continuation symmetrical triangle on JPY: Chart #2 | JPY/USD Weekly –Continuation symmetrical triangle Pipruit: But here market has not reached the target – it couldn’t pass the same distance as triangle body, right? Commander in Pips: Yep, this also very often happens on the market. Also, take a look – the price action inside the triangle was, say, “strange” – long-long 4th swing down, then short-term splash, looks like this was a 5th swing and breakout. As you can see – it’s very difficult to see an absolutely perfect pattern. Ascending and Descending Triangles They call like that, because these triangles have one side as horizontal support or resistance and another one as with common triangle. Look at chart #3 – then you will understand it better: Chart #3 | CHF/USD Weekly – Ascending triangle Pipruit: Ok, I think I’ve got it. It calls ascending, because its base has an upward slope and market establishes higher lows. But the other side is a horizontal resistance level that holds market until breakout. But Commander, looks like this kind of triangles have a bit different market mechanics? Commander in Pips: That’s right, but I think that you can explain it by yourself… Pipruit: Well, I suspect that while in common symmetrical triangle as sellers as buyers are indecision, here – nobody indecision. I see that buyers are strong, since market shows higher lows. But sellers’ strength gradually is out – because although they push buyers from resistance again and again, but each time this pushing is weaker, because sellers could not push down buyers at the same lows – buyers creep and creep closer and closer to resistance, until breakout happens. Wait a minute, does it mean that ascending and descending triangles are often continuation patterns? Commander in Pips: Absolutely not. Although classical school tells that breakout in direction of the hypotenuse slope (i.e. in direction of triangle) is more probable, very often you can see a breakout in the other direction, when horizon resistance level appears to be too tough for buyers… And now I want to share with you an important advanced moment that could help you to foresee the direction of the breakout.