Ascending, Descending & Symmetrical Triangles: Volatility Compression Breakouts

1. The Mechanics of Volatility Compression

Triangles represent coil-like market states where volatility contracts sharply as buyers and sellers battle for control:

• Ascending Triangle (Bullish Bias): Flat upper resistance line + rising higher lows. Aggressive buyers absorb sell orders at higher prices until resistance breaks.
• Descending Triangle (Bearish Bias): Flat lower support line + descending lower highs. Sellers press price downward until support collapses.
• Symmetrical Triangle (Bilateral Compression): Converging trendlines indicating equal contraction before an explosive directional resolution.

2. Trading the Breakout & Measured Move

Entry: Wait for a closed candle beyond the horizontal boundary. Do not enter inside the apex chop.
Stop Loss: Positioned behind the most recent swing low within the triangle.
Measured Target: Measure the widest vertical baseline of the triangle and project it from the breakout point.