In this section, we are going to learn about Ascending Triangle and Descending Triangle Chart Patterns.
Ascending Triangle
The pattern is formed like a right-angled triangle with a resistance line and a trendline of higher lows. The resistance line stops the chart from moving upward while the higher lows indicate increasing buying pressure. This pattern suggests that the market is likely to move higher as it forms higher lows heading towards the resistance line. It’s important to note that the breakout can occur in either direction.
Descending Triangle
This pattern occurs during a downtrend and suggests that the downtrend will continue. It’s formed as a downward-sloping triangle with a support line and a series of lower highs. The support line prevents the chart from dropping further while the lower highs indicate increasing selling pressure. This pattern shows that the market is likely to keep moving lower as it forms lower highs heading toward the support line. Importantly, the breakout can happen in either direction.
