Ascending Triangle

Ascending triangle occurs during an uptrend where price bounces at resistance and continue to form higher lows. In here, the resistance level is a horizontal line, unlike in symmetrical triangle wherein it slopes downward.

As the price consolidates, the resistance level is continually tested. Once a breakout has occurred, price is expected to move approximately the height of the triangle.

In this pattern, we enter the trade depending on where the breakout candle will occur. We go long when break out occurs above the resistance level, and we go short when break out occurs below the support level.

Descending Triangle

Descending triangle occurs when prices consolidate, bounce of near the support level and form series of lower highs during a downtrend.

Similar to ascending triangle, once a breakout occurs, the price is expected to move approximately the same height of the triangle.

Since this is a type of bilateral chart pattern, we enter the trade once there is a breakout candle. We go long when break out occurs above the resistance level, and we go short when break out occurs below the support level.