What is an ascending triangle pattern and how to trade it?
Ascending triangle patterns are one of the most popular chart indicators traders use, but it does not always mean the price will rally. Market analysts rely on many technical indicators to anticipate future trends, one of which is the very-popular ascending triangle chart pattern . What is an ascending triangle pattern? As the name indicates, an ascending triangle on a chart forms when the price consolidates between a rising trendline support and a horizontal trendline resistance. The pattern typically appears during persistent uptrends or downtrends. Most technical analysts see it as a "continuation pattern ," meaning the general market trend is likely to resume. BTC/USD three-day price chart featuring ascending triangle breakout. Source: TradingView For example, the Bitcoin (BTC) price chart above shows the BTC/USD trading pair form an ascending triangle pattern between April 2020 and July 2020. BTC price breaks out of the triangle range in late July to the upside, ret...