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Ascending Triangles Forex Pattern is an strategy to analysis market, The Ascending Triangle is the chart pattern that is formed as the continuation pattern during an uptrend. This chart pattern gives bullish signals to the traders and investors. Sometimes the Ascending Triangle may also be formed as the reversal pattern at the point where a downtrend ends. It doesn’t matter whether the Ascending Triangles are formed as the continuation patterns or the reversal patterns but these are always bullish chart patterns that signal accumulation. This pattern is a short term pattern formed over 1-3 months. The shape of this chart pattern looks like the right angled triangle. A horizontal line is formed at the top by connecting two or more equal high price points.

The two trend lines form this pattern. These trend lines are a flat trend line and an ascending trend line. The flat trend line acts as the resistance level and the ascending trend line acts as the support line. To confirm the Ascending Triangles pattern, the top Forex traders and investors must look for few things as explained below.

Importance OF Ascending Triangles pattern In A Trend
In order to analyze a pattern as an Ascending Triangles pattern, there should be an established trend existing in the pattern.

Top Horizontal Line
There should be at least 2 highs required for the formation of the horizontal line at the top. These highs do not need to be exact but these should be near to each other. One high should be near to the other high but after a reasonable distance. A low should also be there between the two highs.

Lower Trend line
There should be an ascending trend line at the lower side of the chart pattern. It is formed by the two lows that should be separated by some distance. The recent low should be higher than the previous low and if the recent low is equal to or below than the previous low then it is an invalid Ascending Triangle pattern.

Duration of the pattern
An average Ascending Triangles pattern may last from 1-3 months and if the pattern lasts in less than a week then it is an invalid Ascending Triangles pattern.

Trading Volume
Volume contracts with the developing of pattern. If an upside breakout occurs then to confirm this breakout volume should also expand. Volume confirmation is preferred but not necessary every time. If the volume is not expanding at the breakout then the traders and investors should stay away from placing any Forex Trading order.

Moving Average
Moving Average should be considered. If the price of the currency touches or come closer to the 200 days moving average then the traders and investors can consider it as a strong pattern.

Return of Price of the currency to Breakout
After the horizontal line is broken in the Ascending Triangles, it becomes the support level. Sometimes the price of the currency returns to the support level.

Target Price
The target in this pattern is calculated by measuring the height of the Ascending Triangles and then applying this height to the recent breakout level.

Now see the figure below for an example of an Ascending Triangles Pattern.


In the figure above, there are the two highs from where a Top Horizontal Line can be drawn and there are the two lows from where a lower trend line can be drawn and these points represent an Ascending Triangle Pattern. To check the validity, recent low should be higher than the previous low and this condition holds true in the above example so it is a valid Ascending Triangles Forex Pattern.

So the traders and investors keeping in mind all the important points of a correct Ascending Triangles Pattern will be able to get the bullish signals with more accuracy.

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