Wedge and Triangle Patterns

Wedge and triangle patterns are consolidation formations that indicate a temporary balance between buyers and sellers before a resolution.

**Symmetrical Triangle:** - Converging trendlines: lower highs and higher lows - Neither buyers nor sellers dominate — a coiling spring - Can break either direction; wait for confirmation - Target: Width of the triangle added to the breakout point

**Ascending Triangle:** - Flat upper resistance + rising lower support - Buyers are more aggressive (higher lows) against fixed resistance - Bullish bias — typically breaks upward

**Descending Triangle:** - Flat lower support + declining upper resistance - Sellers are more aggressive — bearish bias - Typically breaks downward

**Rising Wedge:** - Both trendlines slope upward but converge - Despite the upward slant, this is a **bearish** pattern — buying pressure weakening - Often signals a top reversal or weak continuation setup

**Falling Wedge:** - Both trendlines slope downward but converge - Despite downward slant, this is a **bullish** pattern — selling pressure weakening - Common at market bottoms and during healthy pullbacks in uptrends

**Crypto applications:** Bitcoin frequently forms symmetrical triangles on weekly charts before major directional moves. Falling wedges are particularly powerful in crypto after significant corrections — they compress before explosive upside breakouts. The falling wedge that formed in late 2018–early 2019 preceded Bitcoin's strong recovery.