Ascending Triangle Chart Patterns – Stock Market

In this blog Global Market Astro explains another type of triangle chart pattern observed in market-Ascending triangle chart pattern.

ASCENDING TRIANGLE :

The ascending triangle usually signals that the price of the security is tend to raise higher towards completion. This pattern is formed as a result of two trend lines forming an apex. One is a flat trend line acting as a point of resistance and an ascending trend line acting as a support for price. Generally the price of the security oscillates between these two trend lines until it breaks out to the upper side. This pattern is usually preceded by an uptrend, making it a continuation pattern

In this chart, the price moves to a high that faces resistance leading to a sell-off to a low. It follows another move higher, which tests the earlier resistance level. When failing to move past this resistance level, the security again sells off – but to a higher low. This continues until the price rises above the resistance level or the pattern fails. 

The ascending support line gives an indication that sellers are beginning to leave the security. Once the sellers are knocked out of the market, the buyers can carry the price above the resistance level and resume the upward trend. The pattern gets completed upon breakout above the resistance level, but it can fall below the support line so be careful when entering prior to breakout.

Source : https://www.globalmarketastro.com/blog/ascending-triangle-chart-patterns/