It is a very common mistake to fold a fringed American flag in a triangle. Very common. But how is one to fold a fringed flag for storage? Fold it in half lengthwise twice and then drape it over a coat hanger and hang it up. This method affords the least amount of wrinkles. Pictured at right is one of my practice flags hanging on the back of my closet door. All of the sides may not match up, but hanging is going to be best for your fringed flag.
If a hangar is not available, fold all fringed flags into a rectangle and store. Never fold a fringed American into a triangle.
Unfringed American flags are the only flags folded in a triangle. However! Don’t fold the flag like in these pictures! These are all badly folded flags. The almost paper-thin flag held by the Marine was folded too little. It’s a small flag, it is not supposed to end up the same size as a standard sized flag. The picture of the two Sailors holding the flag in preparation to fold, has either been reversed or the Sailors are holding the flag backwards (the canton- blue field- should be in the Sailor’s left hand).