stephenleachman

ASCENDING TRIANGLE (TREND REVERSAL)

FX:NZDJPY   New Zealand Dollar/Japanese Yen
68 0 12
The ascending triangle as in all triangle patterns can be used as trend
reversals. It must be noted that the ascending triangle must form at a
key level of support or resistance, I like to use double tops or bottoms.
This pattern forms as price pushes into support or resistance and then
consolidates making equal highs and higher lows forming the ascending
triangle, Once price breaks the pattern conforming the reversal, I personally
always wait for a pullback to the previous highs or lows to see if price will
be resisted or supported before taking a reversol trade. There are different
methods Like Fibonacci Retracements to find targets after a confirmed
reversol but I will lay out the conventional way which is the Distance
Between The Mouth Of The Triangle Added To The Breakout.

Conventional Way To Terad The Ascending Triangle Reversal:

snapshot

-----Bearish Reversal-----
(1) Wait for price to push into key resistance.
(2) Wait for price to consolidate at that resistance forming an ascending triangle.
(3) Wait for price to break prior low.
(4) Sell pullback at prior low.
(5) Stop Above the previous Highs. (The Triangles Highs) (Also can use fibonacci retracements for stops)
(6) Target Is the Distance Between The Mouth Of The Triangle Added To The Breakout.

-----Bullish Reversal-----
(1) Wait for price to push into key support.
(2) Wait for price to consolidate at that support forming an ascending triangle.
(3) Wait for price to break prior highs.
(4) Buy pullback at prior highs. (Flat top of triangle)
(5) Stop Above the previous Low. (Also can use fibonacci retracements for stops)
(6) Target Is the Distance Between The Mouth Of The Triangle Added To The Breakout.



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