Understanding the Ascending Triangle Pattern

Quick one on the ascending triangle, a pattern I've seen play out reliably in various markets, including crypto and commodities. It's generally considered a continuation pattern, but can appear at bottoms too.

Key characteristics: You'll see a horizontal resistance line at the top, marking repeated attempts by price to break higher. Below that, there's a rising trendline connecting higher lows. This indicates increasing buying pressure pushing the price up against that ceiling. Volume often contracts within the triangle, then expands on the breakout.

So, what's the play? A confirmed close above the horizontal resistance is your signal for a long entry. The measured move target is typically the height of the triangle added to the breakout point. Conversely, a break below the rising trendline, especially with higher volume, would invalidate the bullish setup and could signal a deeper correction. For instance, if $ADA was to form such a pattern with resistance around 0.166 and higher lows pushing up, a break above that 0.166 level would be a textbook entry point. Similarly, watching $NG, if it formed a horizontal resistance at 6.15 with rising lows from 5.9, a breakout above 6.15 would be the move. Always consider your stop-loss just inside the pattern or at the previous low swing to manage risk.