Ascending Triangle Chart Pattern

The Ascending triangle is a common chart pattern that is used in making market technical analysis and consists of a clear shape with 2 trend lines. This formation is used by many traders that operate regularly in financial markets like Forex. When it comes to ascending triangle, 1 trend lines is set horizontally which prevents the rate from going higher whereas the 2nd trend line joins the increasing trough series. Investors march forward to take over the long positions while the rates break towards the high resistance. 

As the ascending triangle is usually deliberated as a continuation chart pattern, it is found during the consolidation period during the uptrend. When the breakthrough happens, buyers keep sending the rates insistently for the assets with higher value and probably they will be of higher volume as well. The pricing objective is usually fixed to the entry rate complementing the vertical height in the triangle.

Ideal Ascending Triangle

Ascending Triangle Description

Ascending triangle is quite distinct in some aspects when compared to the simetrical triangle. This type of triangle is concluded as the reliable and trustworthy chart pattern, while the market remains in the uptrend. Here, the peak of the triangle remains flat whereas the bottom appears with an upward slant. Moreover, when it comes to ascending triangle, the market turns overbought and as well the rates become turned back. Buying of stocks again enters and hence the rates will hit the old highs very shortly while the market is turned back again. Buying will further resurface even at higher level compared to the previous paradigm. Rates of the stocks will certainly breakout compared to the earlier highs and it will even go higher when the new entities arrive in. The risk volume in the trading market should be carefully observed prior continuing your trade. The overall time for giving a firm entry in the market will measure your success and failure in the trading ground. 

Price action within the triangle usually identified by zigzag movements of three waves, as in the symmetrical triangle. Indeed, the market volume behavior during formation is identical to the symmetrical triangle.  When the ascending triangle is forming, the market volume is usually behave as follows:
  • The volume drops along the triangle.
  • The volume is high during the rupture or perforation of one of the converging trend lines .
  • In case there is one pullback, the volume must be low.
  • When the price is approaching the price target, the volume increases again.

Example of the Ascending Triangle