IntermediateLesson 3 of 4 · 9 min
Triangles and Flags
Compression patterns and the pauses that often appear inside trends.
Illustrative chart · Ascending triangle
Compression
Triangles form when the range narrows. Ascending triangles have a flat top and rising lows; descending triangles have a flat bottom and falling highs; symmetrical ones narrow from both sides.
Flags as pauses
A flag is a small, orderly counter-move after a sharp push. It describes a pause; whether the trend resumes is only known after the fact, so define invalidation clearly.
Key takeaways
- Triangles = narrowing range.
- The flat side is the level to watch.
- Flags are pauses, not guarantees.
Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.