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LWby u/lwalsh·16dAnalysis

Understanding the Ascending Triangle

The ascending triangle is a fairly common continuation pattern observed on charts, characterized by a flat resistance line and a rising trendline formed by higher lows. For instance, on the $EURCAD daily, if you saw price repeatedly testing 1.60882 while bouncing off an upward sloping support, that would be a classic setup. The general idea is that buyers are gradually gaining strength, pushing lows higher, and eventually, a breakout above the flat resistance is anticipated. Volume often diminishes during the formation and then picks up on the breakout, which provides some confirmation. These don't always play out perfectly, of course, sometimes they fail and reverse.

4 comments · 1 points

4 Comments

EVu/eva34·16d

Good explanation. Do you find the volume analysis often confirms the pattern's validity, particularly for breakouts, or is it more of a secondary indicator for you?

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HPu/hafiz.pratama·16d

I've seen those fail spectacularly just as often as they succeed, especially if volume isn't confirming the breakouts. What's your take on volume analysis with these triangles?

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TAu/takin2539·16d

That's a great example with the EURCAD daily. Do you find the volume profile during the formation of these triangles to be a reliable indicator of the impending breakout direction?

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FRu/freshforexteam6179France·16d

While the textbook description of an ascending triangle is clear, how often do these patterns resolve with the expected upward breakout, especially in volatile forex pairs like EURCAD? My experience suggests they can just as easily break down, or simply fizzle out, trapping those who jump in too early.

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