Back to Pattern Trading for Beginners
Continuation patterns

Symmetrical triangles and wedges

Converging lines with no built-in direction, plus the two wedges whose slope quietly signals exhaustion.

Intermediate9 min readBeginner → IntermediateLesson 10 / 14

Not every converging shape has a directional bias. Learning which ones do — and which are just volatility compressing — separates pattern recognition from pattern superstition.

Coiling — the range is shrinkingDirection is NOT implied by the shape
A symmetrical triangle is a volatility squeeze, not a forecast. It tells you a move is coming, not which way.

Symmetrical triangle: no implied direction

Both boundaries slope toward each other at roughly similar angles. This is a volatility squeeze, not a forecast. It tells you a move is coming, and it tells you roughly when: somewhere between two-thirds and three-quarters of the way to the apex. It does not tell you which way.

Trade it by waiting for the break and going with it, not by guessing. The invalidation is a close back inside the triangle on the other side.

Both lines rise, but they convergeUsually resolves down
The giveaway is that the lows are rising faster than the highs — each new high is a smaller gain. Momentum is fading.

Rising wedge: biased down

Both lines rise, but they converge — the lows rise faster than the highs. Each new high is a smaller gain than the last, which is the signature of momentum fading even while price still makes new highs.

These most often break downward, and when they do the move can be sharp because everyone who bought the rising lows is wrong at once.

Both lines fall, but the range narrowsUsually resolves up
Same logic inverted. Each new low is a smaller loss, which means selling pressure is drying up.

Falling wedge: biased up

The mirror: both lines fall, converging, with each new low a smaller loss than the last. Selling pressure is drying up. These most often break upward.

Why wedges have a bias and triangles do not

Because a wedge is sloping against the direction of the larger move. A rising wedge in an uptrend means the trend is still making higher highs but with diminishing force — the advance is running out of fuel. A symmetrical triangle has no such internal contradiction; the two sides are simply meeting.

That distinction is worth more than memorising which shape is bullish.

How to check this yourself

On a wedge, measure each successive push and write down whether it is larger or smaller than the one before. That simple list is the whole signal. If the pushes are not shrinking, you do not have a wedge — you have a channel, and the reversal bias does not apply.

What you just did

Lesson 10 of 14 in Pattern Trading for Beginners. When you have run the examples or read the section, tick it off and move to the next lesson.