The ascending triangle is a very clear technical analysis pattern, which, unfortunately, is not very common. Therefore, it is better not to classify the figure as relative (continuation, reversal) but to classify it as absolute (i.e., rise, fall). But sometimes, it happens that a pattern appears after a downtrend, thereby reversing the price. Therefore, do not be surprised if you come across an ascending triangle description as a trend continuation pattern. Typically, an ascending triangle is formed on an uptrend, thereby continuing the direction of price movement. This means that no matter what the “weather” was before the pattern, the financial instrument’s price goes up after the completion and confirmation of the pattern. Like the “descending triangle” pattern, the ascending triangle cannot be attributed to either reversal patterns or trend continuation patterns an ascending triangle is a growth pattern. To determine how the price will behave further, it is necessary to further analyze this instrument.Ī rising triangle is not a very common pattern in technical analysis. In the end, buyers break down, and sellers take control of the market. Even though bulls and bears appear to be in relative equilibrium, the narrowing of the rising wedge corridor suggests that supply is winning. The rising wedge is not a very common pattern and is not very easy to spot. But it is important to remember that in any case, after the rising wedge, there is a price decline. If there was a downtrend before the rising wedge, then the price goes down after the wedge, and it turns out that the rising wedge continues the trend.
It sometimes happens that the rising wedge continues the trend. Typically, a rising wedge reverses an uptrend, but there are exceptions. Moreover, this angle’s inclination must be positive the resulting corner should be pointing upward, indicating an uptrend.Ī rising wedge is a bearish reversal pattern. If you draw lines along with the highs and lows, then the two lines will form an imaginary angle that will narrow over time.
In this article, we’ll discuss both the patterns, their application in trading, and the difference between the two.Ī rising wedge is a pattern that forms on a fluctuating chart and is caused by a narrowing amplitude.
The rising wedge and ascending triangle patterns help the price action traders to predict further movement of price of any financial asset. Summary of rising wedge vs ascending triangle.The pros and cons of ascending triangle.The difference of rising wedge vs ascending triangle.