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The Technical Pattern - Ascending Triangle

03月15日 16:58

Today let's study more about Technical patterns - Ascending triangle

Definition of ascending triangle
After the currency price rose for a period of time, it encountered resistance at a certain position and fell back. But soon after the decline was met with an uptick in buying, and then at the level of the last high price, the price fell again. Before it fell to the last low, it encountered strong buying, which prompted the currency price to rise, and then encountered resistance and fell again at the level of the last high price. Repeat this to form a right-angled triangle with a horizontal top line and an upward sloping bottom line.

As shown below:

The low point of the ascending triangle is getting higher and higher each time it falls, which is a signal of strong multi-party power, so the probability of a breakthrough in the market outlook is higher. When the currency price breaks above the upper line, it conforms to the Dow theory's definition of an uptrend: the latter low is higher than the former low, and the latter high is higher than the former high. Therefore, the ascending triangle mostly indicates that the market outlook continues to be bullish.

The technical characteristics of the ascending triangle
(1). Generally , this happens in the process of rising, and a few happen in the process of falling.
(2). The high point of each rise is basically on a horizontal line, and the low point of the fall is gradually increased. Connecting the high points and the low points, respectively, forms a right triangle with a horizontal upper line.
(3). The overall volume gradually shrinks along the direction of the tip of the triangle.
(4). After the currency price breaks through the upper line, sometimes it will retry the side line.

The technical meaning of the ascending triangle
(1). The ascending triangle is a bullish market outlook after breaking through the upper line upwards, which is a buy signal.
(2). It falls below the lower line of the ascending triangle, and the market outlook is bearish, which is a sell signal.

Example of BTC

In the 11-6BTC market, it retraced from US$67,000 to around US$60,000, and retraced by about 9% in 17 days. The whole pattern came out of a big triangle arrangement, and then the currency price broke through the upper line at the end of the triangle arrangement, rising to a maximum of US$69,000, an increase of 12%.
Disclaimer
This article is for reference only.
Such information provided by Gate.io does not constitute any investment advice and is not responsible for any of your investments.
Regarding technical analysis, market judgment, trading skills, trader sharing, etc., may involve potential risks, investment variables and uncertainties.
This article does not provide or imply any opportunity to guarantee profits.

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