Triangles can be visualized as pennants with no poles. There are four types of triangles: symmetrical, ascending, descending, and expanding (broadening).
A symmetrical triangle consists of two symmetrically converging support and resistance lines, defined by at least four significant points. (See the Figure below).
The pennants are closely related to the flags. The same principles apply. The sole difference is that the consolidation area better resembles a pennant, as the support and resistance lines converge.
The flag formation provides signals for direction and price objective. This formation represents a brief consolidation period within a solid and steep upward or downward trend. The consolidation itself is bordered by a support line and a resistance line, which are parallel to each other or very mildly converging, making it look like a flag (parallelogram) and tends to be sloped in the opposite direction from the slope of the original trend, or is simply flat.
The diamond formation tends to occur at the top of the trend. The price activity may be outlined by a shape resembling a diamond. The increase and decrease in trading volume closely mimic the combination of divergent and convergent support and resistance lines(see the Figure below).
In a triple-bottom formation, the bottoms have about the same amplitude. A parallel line (the neckline) is drawn against the line connecting the three bottoms (B, D, and F.) As a support line, the neckline is broken at point A. It turns into a strong resistance for price levels at С and E, but eventually fails at point G (see Figure below)