K-Line Academy's Pattern Teaching: Ascending Triangle

Usually, the connecting line of the rebound high points approaches a horizontal line while the low points of the pullback line gradually elevate, thus forming an upward sloping line. At the end of the consolidation pattern, accompanied by an increase in attacking volume, there is generally a greater chance of an upward breakout. The price shows strong selling pressure at a certain level, and when the price rebounds from the low point to that level, it subsequently falls back. However, market buying power remains very strong, and the price rebounds immediately without dropping back to the previous low, continuously causing the price to narrow down along with the fluctuations of the resistance line. If we connect each short-term peak, we can draw a resistance line; connecting each short-term low point will form another upward sloping line, thus creating an ascending triangle. The trading volume continues to decrease during the formation of the pattern.

The ascending triangle has the following characteristics:

1. Several peak connection lines form a horizontal line, while several trough connection lines form an upward trend line;

2. Trading volume gradually shrinks and only starts to expand again at the end of the consolidation, breaking through the top with a massive volume;

3. The breakout should be clean and decisive;

4. As the consolidation approaches its end, the price fluctuation range becomes smaller and smaller.