Flat top resistance line: The pattern's horizontal top line connects the swing highs that occur within the pattern and serves as a strong resistance level.When observing the exchange rate chart for a currency pair, forex traders using this classic chart pattern should pay close attention to its following key characteristics so that they can identify it correctly. Recognizing the ascending triangle pattern on exchange rate charts is essential for a forex trader to capitalize on its potential. Identifying an Ascending Triangle Pattern on Forex Charts Trading volume tends to decrease during the ascending triangle pattern’s formation as with most triangle patterns. It looks quite distinct from other triangle patterns like the symmetrical, descending and expanding triangles.įorex traders often look for ascending triangles during uptrends since they signal a potential continuation of the current trend. Once you learn to observe its key characteristics closely, you will see that the ascending triangle differs significantly from other classic chart patterns like the pennant and flag patterns. Its base ascending trendline acts as a rising support line while its horizontal resistance initially inhibits movement above it but eventually gives way as a breakout occurs. Source: DailyFX.Īs the ascending triangle name suggests and the above image illustrates, the pattern takes the shape of a triangle. Schematic diagram of the ascending triangle pattern showing its key trendlines. This classic chart pattern is formed by two key components: a flat upper resistance line above the pattern and an upward-sloping support line lying below the pattern. The ascending triangle pattern is a bullish continuation pattern frequently observed on exchange rate charts by forex traders using technical analysis. Can You Use the Ascending Triangle Pattern Profitably in Forex?.Use Proper Risk Management and Position Sizing.Using Additional Technical Indicators for Confirmation.Patiently Await a Breakout Confirmation.Tips and Best Practices for Trading Ascending Triangle Patterns.Trading Strategies for Ascending Triangle Patterns.Example of Ascending Triangle Trade Setups.Identifying an Ascending Triangle Pattern on Forex Charts.What is the Ascending Triangle Pattern?.
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