Ascending Triangle / Descending Triangle
Last updated
Last updated
Triangles patterns are also very common. I recommend you to learn them properly and have enough practice. This will come in handy very often.
Ascending Triangle forms when price makes higher lows but runs into the same top-level resistance again and again. You see a flat line at the top and a rising line below.
A Descending Triangle is the mirror image. Price forms a flat support line at the bottom while making lower highs above it. The market keeps failing to push higher, and each rally tops out lower than the previous one. A break below that flat support often signals more downside to come.
Rising Trendline. Draw a line under the higher lows.
Horizontal Resistance. Spot the flat line at the top where price keeps hitting a wall.
Tightening Price Action. Watch price squeeze between the rising trendline and the top resistance.
Entry: many look for a break above the flat top.
Stop Placement: a common spot is under the last higher low or under the rising line.
Target: measure the triangle’s height at its widest part and project that above the breakout.
Volume: check if volume spikes when price breaks out. That can show more strength.
Wait for a full candle close above resistance to confirm a real breakout.
Combine with other signals, like RSI or MACD, to get more confidence.
Beware of fake moves. Price might poke above the line only to drop back.
Open your charting tool and pick any market. Scroll through historical data until you spot a flat top line with rising lows beneath it. Sketch your lines, note where volume spikes, and pretend to enter a trade right above the breakout point.
Place a stop under the last higher low, set a target about the triangle’s height, and watch how price moves in your backtest. Repeat with different symbols to see which setups worked best.
Reminder: Don't forget to check the if you see terms that you don't know.
