![]() How to identify a good Ascending Triangle Pattern? The pattern ranked 16th out of 39 chart patterns for upward breakouts and 30th out of 36 chart patterns for downward breakouts. ![]() His results indicate that the Ascending Triangle tends to perform well in upward breakouts, compared to downward breakouts. He analyzed daily data on US equities and identified more than 1,400 trades based on the breakout of the Ascending Triangle chart pattern. Thomas Bulkowski is credited with carrying out the most extensive publicly available research on chart patterns. Ascending Triangle Pattern Second Entry Example – GPBUSD D1 The breakout point must be chosen carefully because the pattern has a tendency to have many small false breakouts. It is important to approach the pattern with neutrality until a clear breakout is confirmed. When an ascending triangle experiences an upward breakout, it signals a reversal of a previous downward price trend and a downward breakout indicates a continuation of the downward trend. Is Ascending Triangle a Continuation or Reversal Pattern? ![]() Volume tends to decline as the pattern forms. The more touches there are on both of the trendlines, the more valid and significant the pattern becomes. To confirm the validity of an ascending triangle chart pattern, traders should instead look for multiple touches of the top trendline by minor highs, and the bottom trendline by minor lows. Traders should be cautious of patterns with empty spaces with not enough crossings between two lines. The differences in failure rates are generally small, where downward breakouts have a failure rate of only 3%, a quarter of the 12% rate for upward breakouts. On the other hand, downward breakouts tend to have lower break-even failure rates than upward breakouts. Upward breakouts are commonly more successful than downward ones. As the price oscillates between the upper resistance level and lower support level, volume usually diminishes. The breakout points have to be chosen carefully since this pattern is prone to have many small false breakouts.
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