While triangle is considered as a continuation pattern, it is highly recommended
one should not jump the gun and wait for the breakout to take place before
entering the market because occasionally the triangle may initially appear as a
continuation pattern but ended up being a reversal pattern just like the chart
Other continuation patterns include flags, pennants and rectangles, which can be
commonly found along a trending move. Flags and pennants are basically
considered short-term pattern, as a brief pause or small consolidation before the
previous trend resumes. These patterns are mostly preceded by a sharp rise or
decline and usually happen at the middle of the trend.
No matter how these patterns resemble, they all share a common characteristic,
a near term counter trendline (slope against the trend) appears in the pattern
which serves as the signal line or trigger line. The break of the signal line
confirms the end of the continuation pattern and price should resume.