What is a descending triangle pattern?

A descending triangle is a chart pattern used in technical analysis created by drawing one trend line connecting a series of lower highs and a second horizontal trend line connecting a series of lows. A regular descending triangle pattern is commonly considered a bearish chart pattern or a continuation pattern with an established downtrend.

Are ascending triangles bullish?

This triangle appears during an upward trend and is regarded as a bullish continuation pattern. Sometimes it can also be formed at the end of a downward trend as a reversal pattern, but it is more commonly considered as a continuation chart pattern. Ascending triangles are mostly regarded as bullish patterns whenever they are formed in the charts.

What does the ascending triangle mean?

The ascending triangle is formed in an uptrend and indicates acontinuation of the uptrend. It is formed as a right-angled triangle with a resistance and a slope of higher lows. The resistance does not allow the prices of the securities to move more upward. The higher lows show that the buying pressure has increased.

What should you consider when trading with the ascending triangle pattern?

There are certain factors that one should consider when trading with the Ascending Triangle Pattern:The prior trend should be an uptrend. There should be a horizontal line acting as a resistance level and prices should be making higher lows. The prices should continue to move up after the breakout from the resistance level.