Ask Colin

Does it matter whether triangles are ascending or descending?

Yes.

Symmetrical triangles can go either way when they break out.

Ascending triangles will tend to break out upwards. If they do break out upwards, then usually an uptrend follows. If they break out downwards, they are bearish.

Descending triangles are the opposite in every respect to ascending triangles.

NOTE CAREFULLY - it is the direction of the breakout that is the more important factor than the shape of the triangle.

Also where the triangle occurs will have some bearing. A stock that has gone up 10 times in price over 5 years, is now selling at 90 times earnings and forms an ascending triangle - bullish? Maybe, but more likely not.

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