The pattern should be well-defined with at least two or more touches on the ascending trendline and two or more touches on the horizontal resistance line. The first step to trade an ascending triangle is to identify it, as outlined in the previous section. How to trade an ascending triangle pattern However, as bulls regain control, the wedge will narrow and the breakout of the horizontal trendline will signal a continuation of the uptrend. The triangle signals a temporary pause in the rally, i.e., the consolidation phase. A horizontal trendline (resistance): This line represents a key level of resistance.įor an ascending triangle to form, the instrument should be within an existing uptrend.An ascending trendline (support): As the price moves higher and posts higher lows, it will create a rising trendline.How to identify an ascending triangle pattern Ascending patterns should therefore be anticipated during uptrends, and a breakout would signal a continuation of the rally. Continuation patterns occur within an uptrend or downtrend and signal that the price will continue to move in the same direction after the breakout occurs. The ascending triangle is considered to be a continuation pattern. They will aim for a breakout to the topside as the wedge narrows down. It indicates that bulls are regaining the upper hand and are pushing the price higher. The ascending triangle is generally a bullish chart pattern. Is an ascending triangle bullish or bearish? Some traders will use the pattern on its own to generate an entry signal (i.e., the breakout), while others will use technical indicators for further confirmation (e.g., momentum indicator). The pattern is easy to identify, and it is made up of only two trendlines. An ascending triangle is a bullish technical chart pattern that consists of a series of higher lows (forming the ascending trendline) and a flat, upper resistance level.
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