Lesson #45 What are Ascending Triangles? In What Ways Can Market Proceed After This Situation?

Ascending triangles are named so because of the slope created by the highest price rise. This is another typical situation, where there is a highest price cut off. In this situation, buyers have not been able to reach that high price cut off. However, prices seem to be slowly rising which is shown by the ascending triangle slope.

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At one point both the highest price and the rise in prices will meet at one point. It is from the break-point the prices will either rise or fall down. It is a known fact however, in ascending triangles buyers generally win the battle and the prices begin to rise.

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Here, it is clearly shows that the buyers have won the price rise battle and the prices have moved up smoothly ever since the ascending triangle was broken.

However, this situation could also result into fall of prices. Here we have to remain ready for both the situations. Therefore, as a buyer you should prepare yourself by placing a price above the resistance line, this will be beneficial if the prices start rising after breaking point.

Another price should be placed below the slope of higher price rises, this will help you in case the prices start falling after the break.