ASCENDING TRIANGLE (TREND CONTINUATION)Ascending triangles are mainly considered continuation patterns but they
also can be used as reversals. This pattern starts with initial impulse move
followed by a point of consolidation. As priceconsolidates it makes higher
lows and the same highs until the momentum builds and breaks out back into
the direction of the trend. If price does break back into the direction of the trend
the look for a continuation and a target the Distance Between The Mouth Of
The Triangle Added To The Breakout but preferably I use a 100% extension of
the first impulse move.
Conventional way to trade a bullish Ascending Triangle pattern:
-----Breakout-----
(1) Wait for a clear Ascending Triangle to form.
(2) Buy a break of the highs.
(3) Stop below the previous Low.
(4) Target 1 Is the Distance Between The Mouth Of The Triangle Added To The Breakout.
(5) Target 2 is a 100% extension of the first impulse move.
-----PullBack-----
(1) Wait for a clear Ascending Triangle to form.
(2) Wait for price to break and close above previous high.
(3) Buy pullback at top of triangle.
(4) Stop below the previous Low.
(5) Target 1 Is the Distance Between The Mouth Of The Triangle Added To The Breakout.
(6) Target 2 is a 100% extension of the first impulse move.
Conventional way to trade a Bearish Ascending Triangle pattern:
-----Breakout-----
(1) Wait for a clear Ascending triangle to form.
(2) Sell when price breaks the previous low.
(3) Stop Abouve the triangle Highs.
(4) Target 1 Is the Distance Between The Mouth Of The Triangle Added To The Breakout.
(5) Target 2 is a 100% extension of the first impulse move.
-----PullBack-----
(1) Wait for a clear Ascending triangle to form.
(2) Wait for price to break and close below previous low.
(3) Sell pullback at the broken low.
(4) Stop Abouve the triangle Highs.
(5) Target 1 Is the Distance Between The Mouth Of The Triangle Added To The Breakout.
(6) Target 2 is a 100% extension of the first impulse move.
