Lesson 8: Learn Forex Ascending and Descending
When there is a continued bullish pattern, it is known as an ascending triangle. It is a
consolidation pattern generally formed during up-trend when the price is holding the
resistance level but still making higher lows.
In an up-trend, the high sets a new resistance. This level holds and the price pulls
back, creating a higher low.
This process repeats itself several times until the price has no more room to oscillate
and it finally breaks to the upside. The price target for this formation should be the
height of the triangle measured up from the resistance level.
The descending triangle is the opposite pattern. It generally forms during a
down-trend when there is a set support level but the price is still making lower highs.
In the chart, you’ll see that the prices are unable to break the support level - but as
the downside pressure persists, it finally breaks to the downside. The price target is
the height of the triangle, measured down from the support level.