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Ascending Triangle

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The ascending triangle trading method isused to identify potential buying opportunities in a market. The method is based on the ascending triangle pattern, which is a bullish continuation pattern that appears as a triangle shape on a chart, with a flat upper trendline and an upward-sloping lower trendline. A breakout is likely where the lines converge.​

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  1. Identify the ascending triangle pattern on a chart: Look for a triangle shape on a chart, with a flat upper trendline and an upward-sloping lower trendline, that forms as prices consolidate and move in a tight range for an extended period of time. 

  2.  You need to place a horizontal line (the resistance line) on the resistance points and draw an ascending line (the uptrend line) along the support points.

  3. Set a buy stop order: Above the resistance level which is the flat upper trendline. This will ensure that you enter the trade as soon as the resistance level is broken.

  4. Set a stop-loss order: Below the lower trendline, which is the support level. This will limit your potential loss in case the trade does not go as planned.

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Created by drawing one trendline that connects a series of lower highs and a second trendline that corresponds to a static low. This pattern can be used as a bearish reversal signal. The support line is horizontal, and the resistance line is descending, signifying the possibility of a downward breakout.

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Descending Triangle

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  1. Identify the descending triangle pattern on a stock chart by connecting a series of lower highs and a static low.

  2. Wait for a break below the lower trendline, which is considered a bearish signal.

  3. Place a sell order at the point of the breakout, or place a stop-loss order just above the upper trendline in case the pattern fails.

  4. Set a profit target at a level that corresponds to the height of the triangle, measured from the breakout point to the apex.

Symmetrical
Triangle

The symmetrical triangle trading method is a technical analysis pattern that is used to identify potential breakout points in a stock or other financial instrument. To use this method, first, identify the pattern on a chart by looking for two converging trendlines that form a triangle shape. Next, watch for a breakout to occur, either above the upper trendline or below the lower trendline. This can be used as a sign to buy or sell the stock, respectively.

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The support line is drawn with an upward trend, and the resistance line is drawn with a downward trend. 

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