Third Lesson About Chart Patterns 2 - Ascending Triangle Model Classification: Continuity model Type: ascendant/bullish Type of transactio...
Third Lesson About Chart Patterns
2 - Ascending Triangle
Model Classification: Continuity model
Type: ascendant/bullish
Type of transaction: Medium - long term
Probability of occurrence: Moderate
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The ascending triangle comes after an ascending wave after which the trend continues as it is rising as it is a continuation pattern to confirm the continuation of the trend.
Form configuration scenario:
- As the price rises in an uptrend, a bounce occurs from a resistance area where the price is shown down on the illustration in point 1.
That point is adopted as a resistance level for all subsequent peaks.
The decline continues because of that resistance until the price bounces up again from a certain support point
A new bottom is formed and is depicted on the figure (2), which will be the lowest bottom of the model.
((If we have resistance level (1) and lower bottom (2)))
- The price bounces from point (2) upwards, until it bounces from a new resistance zone (new top at the same level as the previous top) and is indicated on the illustration of point (3)
Which should be at the resistance level (1), sometimes less or slightly higher than the level (also acceptable).
- The price bounces back from the top (3) down, until it bounces from a new support area (new bottom) and is indicated on the illustration in point (4)
Which should be higher than the bottom number (2).
- Price rises again from point (4) until we reach a new peak number (5) at the same level of resistance previously defined.
And with it the form is completed
((When the model is complete, we find that we have a rising trend, and a resistance line meet together at one point along each)) ..
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Login Buy:
Waiting for the price to rise and breaching the resistance level of the pattern is going up
Once the above resistance and closures are breached, a long hold is opened, and in case the price bounces back to retest the test and bounced again a buy entry is also entered.
That is, we have two ways to enter a buy, either with a direct break or after a retest.
Target :
Is the same distance between the resistance at point (1) and the bottom (2)
That distance is measured between the penetrating resistance to the target.
STOP:
Bottom number (4) is penetrated downwards and closes down from it ...
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.. an illustration on the chart ..
Author : mohammedgaber
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