Advanced Lesson 11 Ascending Triangles

The Uses of Ascending Triangles in Forex Trading

The ascending triangle is a very powerful chart pattern that is used to identify bullish or breakout setups and is characterized by a flat resistance line on the top and rising support line underneath, which reflects increasing buying pressure as traders continue to enter the market at higher lows. The formation typically signals that buyers are gaining strength, and a breakout above the resistance level may soon follow.

You will use the ascending triangle pattern mostly to help you predict and anticipate price breakouts. The pattern shows a buildup of buying interest as it progresses and usually occurs during an existing uptrend. When the currency pair eventually breaks through the top most resistance level, especially on increased volume, it will sometimes lead to a sharp move higher. You can use this breakout point as a strategic entry level for long positions.

Another of its many uses is being able to set sound price targets and stop-loss levels, and how you can also manage your risk from this information. The height of the triangle (measured from the base to the resistance line) is added to the breakout point to estimate a logical price target. This helps you manage expectations and also for you to plan your exits. A stop-loss is typically placed just below the most recent higher low or beneath the triangle’s ascending trendline to control downside risk.

Ascending triangles are very useful for analyzing the market’s psychology. The pattern of the triangle shows you the growing confidence from among buyers, and it also shows hesitation from sellers, something which is very useful. By interpreting this buildup correctly, traders can gain insight into potential trend continuation and align their strategies accordingly.

In this course, you will learn all about the many uses of the ascending triangles and how you can apply their strategy to better your trading success. You’ll learn how to spot the formation, draw and validate trendlines, identify breakout signals, and calculate profit targets. You’ll also be trained on how to distinguish valid setups from false or noisy patterns, how to avoid overtrading, and how to stay disciplined in your strategy and your approach to make sure that every ascending triangle trade is backed by solid analysis and sound strategy. You will learn all of this and more, giving you a great insight into another tool for your onward journey into the world of trading.