Ascending and descending triangle represent a typical upward and downward trend. When you notice that the price move within the price lines and creates a dwindling bottoms, that means that it will create a ascending pattern of triangles and that there will be a breakthrough.
Ascending triangle with breakthrough
You can draw the pattern by drawing a horizontal line that connects the upper extremes of prices and then draw a diagonal line that connects the lower highs of prices (bottoms).
Descending triangle with breakthrough
Descending triangle represents a downward trend. Draw the pattern so, that you draw the line that connects lower highs of prices and diagonal line that connects upper highs of prices (peaks).
Using the ascending and descending triangle
Ascending and descending triangles are very useful for short term investors, because in most cases happen to create a strong trend when it comes to breakthrough of the price lines. Be careful at junctions, which are formed in the era of three to four weeks.
Determine the level of exit positions
Specify the exit level by using the value of the entry and add the height of the pattern, when it comes to breakthrough upwards. When it comes to breakthrough downwards, subtract the height of the pattern from value of the entry.