Ascending Triangle Pattern Tutorial: 3/8 Bullish PatternsAscending Triangle Pattern Tutorial: 3/8 Bullish Patterns
An ascending triangle is a bullish continuation chart pattern that signals the potential for an upward breakout. Here's how it forms:
Flat Upper Trendline: The upper trendline is flat, indicating a resistance level where the price consistently faces selling pressure and fails to move higher.
Rising Lower Trendline: The lower trendline is ascending, showing higher lows as buyers step in at increasingly higher prices.
Price Convergence: The price action gets squeezed between the two trendlines, leading to a tightening range.
Breakout: Eventually, the price breaks above the resistance level, indicating a continuation of the upward trend. This breakout is typically accompanied by a surge in volume.
Ascending triangles are popular among traders because they offer clear entry and exit points. The height of the triangle, measured from the base to the horizontal resistance, can be used to estimate the potential price target following the breakout.
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