A worked example that explains the rule, not a stock price. The two arrows are the breakout and breakdown possibilities, each the height of the pattern. Prices are in the right-hand column, and sessions sit under the volume bar.Hollow green candles closed above their open, and filled red candles closed below it.
Numbers in the example chart
From the same calculation that draws the shape and writes the "Measuring the target" section below.
Upside breakout target
75.8$
Downside break target
43.7$
Pattern height
15.5$
Chart span
76 sessions
What it is
Highs fall and lows rise, so the two sides converge. Growing hesitation: the range shrinks and no one imposes their price.
When the trigger starts and when it fails
Signal
A close outside either side line. The chart shows both possibilities.
A close back inside the triangle after the breakout.
Reading it stage by stage
The two sidesLower highs and higher lows. At least four touch points.
ContractionRange and volume narrow together. Hesitation grows.
Resolution⚠ Do not guess the direction before the breakout. The prior trend tilts the odds but does not decide. Most losses on this pattern come from entering early.
Recognition rules
Two converging sides with roughly opposite slopes.
At least four touch points.
Clear volume contraction inside the formation.
A breakout at two-thirds of the distance to the apex is more reliable.
Measuring the target
The height of the base is added to the breakout or subtracted from the breakdown.
Where it fools you
⚠ Do not guess the direction before the breakout. Most losses on this pattern come from entering early on an imagined "bias". The prior trend only tilts the odds. It does not decide.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
╱ TrendlineHighs fall, lows rise
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
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