An ascending triangle can signal a trend continuation, but it can also be used to signal a reversal signal. It’s the biggest challenge of all the triangles. Most patterns can be divided into continuation or reverse; however, some triangles may give both signals. This FXOpen guide will show you how to recognize when the rising triangle indicates a price reverse and when it forecasts an upward trend.
What is an Ascending Triangle?
A bullish setup is an ascending triangle or rising triangle that is framed with two trendlines. The upper line connects the highest highs that are almost at the same level. While the lower line connects the higher lows, it is angled.
The triangle’s appearance is explained as follows: buyers try to push the price up, but they meet a strong resistance level, so it rebounds. The buyers still have strength, as reflected in the higher lows. The buyers push the price up until it breaks the resistance level. The time frame determines how long the price fluctuates between these two lines. The triangle can remain in place for more than a week on daily charts.
The triangle group includes the rising triangle. There are also descending…