Many people encounter this situation when trading in the crypto market—prices oscillate within a certain range, trading volume gradually decreases, and volatility diminishes. This is often a signal that a major trend is about to emerge.

The triangle breakout trading method is specifically designed to capture such opportunities. The core idea is simple: prices are confined within a triangular range until the forces of buyers and sellers are exhausted, leading to a breakout.

**How to identify the triangle pattern?**

Connect the high points one by one, then connect the low points one by one. Naturally, this forms two converging trend lines. The price bounces between these two lines—when it hits the upper trend line, it tends to fall; when it hits the lower trend line, it tends to rise.

**The key is to judge the breakout direction.** This depends on the "touch points." If there are more touches on the upper side, a breakout upward is more likely; if there are more touches on the lower side, a downward breakout is more probable. Don’t rush to enter the market; after the first breakout, there is usually a pullback for testing. Confirm the direction after the test before entering, which helps ensure the trend and keeps stop-losses relatively small.

**Why is this method useful?** Because the oscillation within the triangle essentially reflects the main force accumulating or distributing. Decreasing trading volume indicates that the chips are consolidating. Once the accumulation is complete, the breakout can be very fierce.

For example, looking at ETH’s daily chart, the recent movement has clearly converged into a triangle, and trading volume is shrinking. From the touch points, there are relatively more touches on the upside. Could this be hinting at a potential trend reversal soon? This is definitely worth paying close attention to.