HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Jason K. Hutson
The triangle bottom is signaled by an ascending triangle in which a flat upper trendline and ascending lower trendline meet and compel prices within the two lines.
Position: N/A
Jason K. Hutson
Traders.com Staff Writer. Enjoys trendlines, support and resistance, moving averages, RSI, MACD, ADX, Bollinger bands, parabolic SAR, chart formations, and volume analysis.
PRINT THIS ARTICLE
ASCENDING TRIANGLES
Ascending Triangles
05/17/00 02:52:52 PMby Jason K. Hutson
The triangle bottom is signaled by an ascending triangle in which a flat upper trendline and ascending lower trendline meet and compel prices within the two lines.
Position: N/A
| In the ascending triangle bottom, the ascending triangle usually acts as a continuation pattern in an uptrend, but sometimes can be found at the bottom of a downtrend, signaling a reversal. The ascending triangle, one of two right-angle triangle patterns, has a flat upper trendline while the lower trendline slopes up. This is indicative of more aggressive buying than selling as the lows get progressively higher, while the highs make it to about the same level each time before breaking out to the upside. |
| The completion of the formation occurs when prices break through the upper flat trendline, usually close to the apex of the triangle. This signals bullish conditions. Similar to other patterns, in this case, prices could retrace to the horizontal trendline before resuming their upward path but not reenter the triangle. Unlike symmetrical triangles, which are neutral in predicting breakout direction, ascending triangles usually break out to the upside. This is also true when preceded by an uptrend. Therefore, ascending triangles act as a continuation pattern, rather than a bottom. |
|
| Graphic provided by: traders.com. |
| |
| Typically, volume will contract during the formation of an ascending triangle bottom and then increase during the breakout above the flat trendline. This corresponds to the number of shares for sale diminishing at the upper trendline price, as buyers bid the stock up and try to catch the breakout. |
Traders.com Staff Writer. Enjoys trendlines, support and resistance, moving averages, RSI, MACD, ADX, Bollinger bands, parabolic SAR, chart formations, and volume analysis.
| Title: | Industrial Engineer |
| Company: | Technical Analysis, Inc. |
| Address: | 4757 California Ave SW |
| Seattle, WA 98116 | |
| Phone # for sales: | 206 938 0570 |
| Website: | Traders.com |
| E-mail address: | JasonHutson@Traders.com |
Traders' Resource Links | |
| Charting the Stock Market: The Wyckoff Method -- Books | |
| Working-Money.com -- Online Trading Services | |
| Traders.com Advantage -- Online Trading Services | |
| Technical Analysis of Stocks & Commodities -- Publications and Newsletters | |
| Working Money, at Working-Money.com -- Publications and Newsletters | |
| Traders.com Advantage -- Publications and Newsletters | |
| Professional Traders Starter Kit -- Software | |
Click here for more information about our publications!
Comments
Date: / /Rank: 4Comment: This looks like the Novice Traders Notebook. Nice!!!
Date: 02/13/01Rank: 3Comment: my question is that even though the triangle led to an up move, I ve found that because it doesn t have a strong base (a period of accumulation) that it will retreat lower after the move.
Have you found the same and if so are these formations just for short-term trades or to catch a move up?
Thanks
Date: 02/13/01Rank: 3Comment: my question is that even though the triangle led to an up move, I ve found that because it doesn t have a strong base (a period of accumulation) that it will retreat lower after the move.
Have you found the same and if so are these formations just for short-term trades or to catch a move up?
Thanks
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog
Join
us on Facebook
Follow
us on Twitter
DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570
PTSK — The
Professional Traders' Starter Kit
Home — S&C
Magazine | Working
Money Magazine | Traders.com
Advantage | Online Store | Traders’ Resource
Add a Product
to Traders’ Resource | Message
Boards | Subscribe/Renew | Free
Trial Issue | Article
Code | Search
Copyright © 1982–2024 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.