Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
Everything about Ascending & Descending Triangle Pattern 1

Everything about Ascending & Descending Triangle Pattern

Elearnmarkets by Elearnmarkets
November 3, 2022
in Technical Analysis, Charts, Patterns & Indicators
Reading Time: 6 mins read
0
14.3k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

The triangle pattern is considered to be a continuation chart pattern which means that the prior trend will continue after the formation of this chart pattern.

The formation of a triangle pattern includes at least five touches of support and resistance.

It involves prices moving in the tighter and tighter range in a triangle pattern which shows the battle between the bears and bulls.

The triangle pattern is mainly of three types- symmetrical pattern, ascending triangle, and descending triangles.

Table of Contents
What is the Ascending Triangle?
What is the Descending Triangle?
Formation of Ascending and Descending Triangle Pattern
Trading with Ascending Triangle Pattern
Trading with Descending Triangle Pattern
Key Takeaways

In this blog we will be discussing ascending and descending triangles and how to trade with them:

What is the Ascending Triangle?

The ascending triangle is formed in an uptrend and indicates a continuation 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.

This pattern clearly indicates that the market moves higher as the higher lows are formed heading toward the resistance line.

This indicates the strength of bulls and bulls are willing to pay more for the stock.

The breakout of the prices is confirmed when the prices break from the resistance level with volume and continue to move upwards.

What is the Descending Triangle?

The descending triangle is formed in the downtrend and indicates the continuation of the downtrend.

It is formed as a downward sloping triangle with support and a slope of lower highs.

The support does not allow the prices of the securities to move more downward.

The lower highs show that the selling pressure has increased.

This pattern clearly indicates that the market moving lower as the lower highs are formed heading toward the support line.

This indicates the strength of bears and they are willing to sell more for the stock.

Learn to Identify Trend Reversals with Candlesticks in just 2 hours by Market Experts

The breakout of the prices is confirmed when the prices break from the support level with volume and continue to move down.

Formation of Ascending and Descending Triangle Pattern:

Below is the formation of the Ascending and Descending Triangle Pattern:

Ascending & Descending Triangle Pattern

Trading with 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.

Example:

Below is an example of an ascending triangle pattern formed in the daily chart of Birlasoft Ltd. after an uptrend:

ascending triangle chart

Price Target:

The price target can be set as the width of the ascending triangle from its high to low and then add this value to the breakout level.

Stop Loss:

The stop loss can be placed at the resistance level.

Trading with Descending Triangle Pattern:

There are certain factors that one should consider when trading with the descending triangle pattern:

  • The prior trend should be downtrend.
  • There should be a horizontal line acting as a support level and prices should be making lower highs.
  • The prices should continue to move down after the breakout from the support level.

Example:

Below is an example of a descending triangle pattern formed in the weekly chart of Bosch Ltd. after the downtrend:

descending triangle chart

Price Target:

The price target can be set as the width of the descending triangle from its high to low and then add this value to the breakout level.

Stop Loss:

The stop loss can be placed at the support level.

Key Takeaways:

  • The triangles are considered to be a continuation chart pattern which means that the prior trend will continue after the formation of this chart pattern.
  • The ascending triangle is formed in an uptrend and indicates the continuation of the uptrend.
  • The descending triangle is formed in the downtrend and indicates the continuation of the downtrend.
  • There are certain factors that one should consider when trading with the descending and ascending triangle pattern.

Happy Learning!

Tags: Ascending triangle patternchart patterndescending triange patternenglishtechnical basics
ShareTweetSend
Previous Post

Invest in IPO – 6 Factors to check before you invest in IPO

Next Post

Business Models – Example, Types, Importance & Advantages

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

How to trade with Renko Charts Efficiently? 2
Technical Analysis

How to trade with Renko Charts Efficiently?

June 6, 2023
2.7k
Technical Analysis in Stock Trading 3
Technical Analysis

Technical Analysis in Stock Trading

June 8, 2023
7.4k
The Ultimate guide to Trading Divergences 4
Technical Analysis

The Ultimate guide to Trading Divergences

May 26, 2023
1.2k
Trading Psychology: Guide to Master Your Mind in 5 Steps 5
Technical Analysis

Trading Psychology: Guide to Master Your Mind in 5 Steps

May 24, 2023
3.3k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars

© 2020 Elearnmarkets All Rights Reserved