WHAT IS ASCENDING TRIANGLE CHART PATTERN

ASCENDING TRIANGLE CHART PATTERN

 The ascending triangle is a bullish continuation pattern  and are most reliable when found during an uptrend. It indicates a possible continuation of the current uptrend.An Ascending Continuation Triangle shows two converging trendlines. The lower trendline is rising and the upper trendline is horizontal. .  Each line must be touched at least twice for validation .

A trend line can be drawn connecting multiple highs during this time, which should be horizontal to indicate some resistance above current prices. The horizontal top trendline need not be completely horizontal but it should be close to horizontal.   A second trend line is an ascending or rising trend line which connects multiple higher lows during this period, completing the ascending triangle pattern. Ascending Triangle with equal highs and higher lows. Note that volume expands at the start of the triangle , decrease as the triangle forms and expands at the breakout.

Volume is an important factor to consider. Volume contracts during the consolidation phase, and should expand during the breakout. If the volume picture is not clear , investors should be cautious about decisions based on this Triangle.