The Ascending Triangle Pattern
The Ascending Triangle is generally considered a bullish continuation pattern. It is formed when a price experiences a series of higher lows as resistance remains fixed at a horizontal level, creating a triangle shape. This pattern indicates increasing buying pressure, and as buyers push the price higher with sellers maintain resistance at a certain price level. It has a flat resistance line at the top and a rising support line at the bottom.
The Descending Triangle Pattern
The Descending Triangle is the bearish counterpart to the ascending triangle and is typically seen as a bearish continuation pattern. It forms when the price records lower highs while finding consistent support at a horizontal level. This pattern creates a triangle with a falling upper trendline and a flat lower trendline. The descending triangle indicates increasing selling pressure. It has a flat support line at the bottom and a falling resistance line at the top.
In this course, you will learn all about the two different types of triangle formations. You will learn how to read and identify both of them and how to use them with regards to trading. You will find out why both patterns reflect a struggle between buyers and sellers, why the tightening range within the triangle suggests market consolidation. How these patterns are helpful in identifying breakouts and also in setting entry points and stop-loss levels.
In addition, you will learn why both triangles are good at identifying price targets and for risk management, and how you can spot potential false breakouts, which can occur during volatile markets or during major news events. Plus, you’ll find out how these patterns can occasionally act as reversal patterns, all of this and more as you gain yet another tool under your belt which can aid you on your journey through the Forex trading world.
