What Is a Worked Example of Triangles?

What is a worked example of triangles?

A worked example of a triangle is a fully stated scenario where you (1) choose assumptions about price points and (2) apply the standard triangle idea to see how the chart geometry is recognized—without treating the pattern as a guaranteed prediction.

In this article, “triangle” means a chart range where price swings compress over time and two sides of a boundary (an upper boundary from lower highs, and a lower boundary from higher lows) move toward each other. The goal of the worked example is to help you explain what you see and verify the labeling rules using only the chosen assumptions.

How does a worked example of triangles work?

To work through a triangle, you typically do three things:

Select swing points (the turning points) that your definition will use.
Draw two boundary lines: an upper line (through the relevant lower highs) and a lower line (through the relevant higher lows).
Confirm that those boundaries converge, meaning the distance between them narrows as time moves forward.

A triangle can appear in different styles (for example, symmetrical or with one side steeper), but the core mechanic for recognition is convergence of two sides created from swing points.

Worked numerical scenario (with explicit assumptions)

Assume you are examining a price chart made of consecutive bars. Because no real-time data is provided, you must use hypothetical swing points.

Assumptions

You will identify swing points only at the bar close.
You use exactly three upper swing highs to define the upper boundary, and exactly three lower swing lows to define the lower boundary.
Time runs from left to right and is represented by x-values 1 through 6.
All numbers below are placeholders solely for illustrating geometry.

Hypothetical swing points

Upper boundary candidates (lower highs):

(x=1, y=1.200)
(x=3, y=1.195)
(x=5, y=1.190)

Lower boundary candidates (higher lows):

(x=1, y=1.185)
(x=3, y=1.188)
(x=5, y=1.191)

Now compute simple line boundaries by using the first and last points of each side (a clear, reproducible choice).

Upper boundary line (through (1, 1.200) and (5, 1.190)):

Slope = (1.190 − 1.200) / (5 − 1) = −0.010 / 4 = −0.0025 per x.
Upper boundary at x=3: y = 1.200 + (−0.0025)*(3−1) = 1.200 − 0.005 = 1.195.

Lower boundary line (through (1, 1.185) and (5, 1.191)):

Slope = (1.191 − 1.185) / (5 − 1) = 0.006 / 4 = 0.0015 per x.
Lower boundary at x=3: y = 1.185 + (0.0015)*(3−1) = 1.185 + 0.003 = 1.188.

Convergence check

At x=1, the gap between upper and lower lines is:

1.200 − 1.185 = 0.015

At x=5, the gap is:

1.190 − 1.191 = −0.001

In a real chart, you would not want the lines to fully cross while the triangle is still “forming,” but this example is intentionally close to demonstrate narrowing. A cleaner convergence-only version would keep the last gap positive; for instance, if the last lower low were 1.189 instead of 1.191, then the gap at x=5 would be 1.190 − 1.189 = 0.001.

What you can independently verify

Using only the assumptions above, you can verify:

The upper side slopes downward (−0.0025).
The lower side slopes upward (+0.0015).
The distance between sides shrinks over time (narrowing range).

This is the “worked” part: your labeling can be checked step-by-step because the boundary lines and gaps come from explicit numbers.

Relevant limitations and risks

Triangles are descriptive geometry, not a guarantee of future direction. Key limitations include:

Swing-point selection is subjective If you choose different swing highs/lows, you can draw different boundaries. That means the same market can be labeled as “triangle” by one definition and “range” by another.
Breaks and reversals are not fixed Even if price reaches a boundary, outcomes can differ because market structure can change. A move that looks like a boundary “break” can also fail and rotate back into the range.