Chart Analysis and Chart Pattern Recognition – Ascending Triangle Pattern
|The ascending triangle pattern is a variation of symmetrical triangle formation that has a flat
resistance line and a rising support line. The higher lows indicate the
increasing demand and give the ascending triangle definitive bullish bias. The
ascending triangle usually represents an accumulation stage in bullish market.
The ascending triangle is considered as a continuation pattern, especially in an
uptrend, but it may also mark a reversal in a downtrend. Volume usually increases
on a breakout move. After breakout (similar to rectangle), resistance may turn into
potential support and vice versa.
Ascending Triangle Screening page presents a list of stocks forming an Ascending Triangle Pattern.
# 1As a continuation pattern, an ascending triangle usually appears within
a young trend, characterized by neutral long-term indicators and overbought
short-term indicators. An ascending triangle resets short-term indicators to
neutral and then continues the movement in parent's direction.
# 2 As a reversal formation, an ascending triangle appears in a mature downtrend,
characterized by oversold short-term and long-term indicators. This situation
usually generates bullish divergence on long-term indicators.
# 3 For the best results, chart patterns should be considered together with other technical analysis signals and technical trading techniques.
Estimated Target: the main trend support/resistance line.