This pattern is commonly found on all time frames. Volume usually decreases as the pattern is being formed, and increases when breaking or retesting the triangle's upper border (5) The target measurement in that case will be applied from the lower border's breakout rate. The most common direction of the pattern is a continuation, but that doesn't rule out the existence of reversal ascending triangles. The breakout of the pattern is expected at around (half / two thirds) the triangle formation, measured from the first touch (1) to the intersection point of upper and lower borders. The pattern is completed when price action reverses direction from the second support (4) and goes upwards till it breaks the triangle's upper border at point (5) NOTES ON ASCENDING TRIANGLEīefore the breakout, 4 touches to the triangle's upper and lower borders are the minimum for a valid pattern, more touches are acceptable. Price action reverses direction from the second resistance (3) and goes downwards, till it finds the second support (4), which must be higher than the first support (2) Price action reverses direction from the first support (2) and goes upwards, till it finds the second resistance (3), which will be around the rate of the first resistance (1) Price action reverses direction from the first resistance (1) and goes downwards till it finds the first support (2), which will be the lowest low in the pattern. In an uptrend, price action finds the first resistance (1), which will be the horizontal resistance for the rest of the pattern formation. Bears make a stand at a certain rate and try holding it as much as they can, while bulls keep squeezing on that rate till they finally break it and the exchange rate continues its uptrend. This chart pattern starts forming with bulls already in control of the exchange rate's uptrend. Stop loss: can either be the triangle's upper border rate (5), or the last touch to the triangle's lower border before the breakout (4) ASCENDING TRIANGLE PRICE ACTION Take profit: identified by measuring the vertical distance between the triangle's upper border and the first support (2), that measurement is then applied from the breakout rate (5) Illustration of how to trade ascending triangle chart patternĮntry: after breaking the triangle's upper border at point (5), either with an entry after the breakout, or after a possible retest of the upper border.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |