{"id":544286,"date":"2023-01-27T11:05:00","date_gmt":"2023-01-27T08:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/"},"modified":"2023-01-27T11:05:00","modified_gmt":"2023-01-27T08:05:00","slug":"what-is-an-ascending-triangle-pattern-and-how-to-trade-it","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/","title":{"rendered":"# What is an ascending triangle pattern and how to trade it?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28149fee2d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28149fee2d3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/#%E2%80%9D_What_is_an_ascending_triangle_pattern_and_how_to_trade_it_%E2%80%9C\" >&#8221; What is an ascending triangle pattern and how to trade it? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/#What_is_an_ascending_triangle_pattern\" >What is an ascending triangle pattern?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/#How_to_trade_an_ascending_triangle_pattern\" >How to trade an ascending triangle pattern?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\/#Beware_of_fakeouts\" >Beware of fakeouts<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_What_is_an_ascending_triangle_pattern_and_how_to_trade_it_%E2%80%9C\"><\/span>&#8221; What is an ascending triangle pattern and how to trade it? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Market analysts rely on many technical indicators to anticipate future trends, one of which is the very-popular ascending triangle chart pattern.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_ascending_triangle_pattern\"><\/span>What is an ascending triangle pattern?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the name indicates, an ascending triangle on a chart forms when the price consolidates between a rising trendline support and a horizontal trendline resistance.<\/p>\n<p>The pattern typically <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears during persistent uptrends or downtrends. Most technical analysts see it as a &#8220;continuation pattern,&#8221; meaning the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>\u00a0market trend is likely to resume.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/2310873d-d03a-418a-ba62-4113b97811d8.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD three-day price chart featuring ascending triangle breakout. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>For example, the Bitcoin (BTC) price chart above shows the BTC\/USD trading pair form an ascending triangle pattern between April 2020 and July 2020.<\/p>\n<p>BTC price breaks out of the triangle range in late July to the upside, returns to retest the pattern&#8217;s resistance trendline as support in September for further bullish confirmation, resuming its uptrend.<\/p>\n<p>However, the ascending triangle is not always a bellwether for bullish continuation, particularly in bear markets. For instance, its occurrence during the 2018 bear markepreceded more downside, as shown in the Ether (ETH) price chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/a2428832-0b8b-48e9-a63d-81f658eed90d.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD three-day price chart featuring ascending triangle breakdown. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The are also instances when ascending triangles have signaled the end of bear markets. One is Ethereum&#8217;s triangle formation between March 2020 and April 2020, which led to a trend reversal to the upside, as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/e6d2fd51-f621-4a94-b299-dc4b74d193c7.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD daily price chart featuring ascending triangle reversal. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>So, given these variations in outcome, how do traders use this chart pattern to help reduce risk and better prepare for the next move? Let&#8217;s take a closer look.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_trade_an_ascending_triangle_pattern\"><\/span>How to trade an ascending triangle pattern?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The ascending triangle has a widely-tracked measuring technique that could help traders identify their profit targets following a breakout or breakdown.<\/p>\n<p><strong><em>Related:\u00a0Cryptocurrency investment: The ultimate indicators for crypto trading<\/em><\/strong><\/p>\n<p>The target in a bull trend is measured by taking the maximum distance between the triangle&#8217;s upper and lower trendline, then adding the distance to the upper trendline. The same applies to ascending triangle reversal setups.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/ad407be2-85f1-4859-9f4d-1bd88783e8c8.png\"><figcaption style=\"text-align: center;\"><em>Ascending triangle pattern breakout target illustration<\/em><\/figcaption><\/figure>\n<p>Conversely, the profit target in a bear trend is obtained by measuring the distance between the triangle&#8217;s upper and lower trendline. Then, add the outcome to the breakdown point on the lower trendline.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/1d6d8266-ae11-4269-8575-83bdf3b64101.jpeg\"><figcaption style=\"text-align: center;\"><em>Ascending triangle pattern breakdown target illustration<\/em><\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Beware_of_fakeouts\"><\/span>Beware of fakeouts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ascending triangles have a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/samuraitradingacademy.com\/7-best-price-action-patterns\/\">72.77% success rate<\/a> of meeting their profit targets \u2014 meaning fakeouts are certainly possible.<\/p>\n<p>Some clues can be obtained by checking the accompanying trading volume. An uptick is typically seen as a sign of strength. Conversely, a flat volume trend hints that the breakout or the breakdown may not have enough momentum.<\/p>\n<p>Using stop-losses on the opposite side of the trend is also another tool traders can use to reduce risk in a potential ascending triangle breakout or breakdown scenario. In other words, traders can exit their positions at a smaller loss should the trend reverse prior to reaching its technical profit target.<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/what-is-an-ascending-triangle-pattern-and-how-to-trade-it\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; What is an ascending triangle pattern and how to trade it? &#8220; Market analysts rely on many technical indicators to anticipate future trends, one of which is the very-popular ascending triangle chart pattern. What is an ascending triangle pattern? As the name indicates, an ascending triangle on a chart forms when the price consolidates&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544287,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/bdb5e656-84c5-4228-941a-69bc86f56792.JPG","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,110520,74939,78261,73785],"class_list":["post-544286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-how-to-crypto","tag-market-analysis","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=544286"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544287"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}