Forex Chart Pattern : Ascending Triangle

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The ascending triangle pattern is similar to the symmetric triangle (symmetric triangle) except the top trend line is the horizontal line that serves as the resistance. The Ascending Triangle pattern generally indicates the bullish and most reliable tendency when it emerges as a continuous pattern in an uptrend. In this pattern, the buyer slightly exceeds the number of sellers. The market becomes overbought and the price starts to move down. However, then buyers re-enter the market and prices are pushed back to recent highs, and sales happen once again. Buyer goes back into the market, but at a higher amount than before. The result is a stable high level, which is more or less the same but there is a series of lower lows. The price finally broke the resistance level where the high level is formed and pushed higher again as new purchases enter the market and the volume increases.

Forex Chart Pattern

Forex Chart Pattern : Ascending Triangle

Entry Signal

In reading the graph with Ascending Triangle continuous pattern, the entry signal is given when the price breaks the upside (resistance level) of the ascending triangle pattern. This should happen around 66% inside the triangle. If the price break of the upper triangle (resistance) occurs near the top of the triangle, the entry signal is invalid because the resistance penetration is likely to be less momentum and has a higher chance of chance failure.

Price projection

The price projection of the ascending triangle can be calculated by taking the widest part of the triangle and adding it to the breakout level. Alternatively, the trend line can be drawn parallel to the resistance trend line whose angle leads to the breakout movement. The distance of the resistance line and the trend line can be an extension of the target price for the next move.

Forex Chart Pattern

Forex Chart Pattern : Ascending Triangle

In using this continuous ascending triangle graph pattern, you should be able to identify a valid resistance level and draw a rising trend line. It can also be interpreted that the price movement in the ascending triangle pattern is the movement of the narrowed price range. And when a breakout or price breakout of the resistance should be followed by increased price and volume momentum. This will recently be a valid entry signal.

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