There are many formations of Triangles in the Geometric pattern family; Ascending, Descending, Broadening, Symmetrical. The definition of an Ascending or Descending trendline comes from the structure having one horizontal trendline and one inclined trendline on an uptrend or downtrend.
Ascending Triangle
In an Ascending Triangle, the peaks of swings in price movement can be connected with a horizontal line. The lows of each leg ascend higher along a lower uptrend line.
A breakout of the price from the upper line is considered as an indication that an uptrend will be continued. A lower line breakout shows a potential reversal for the price to fall.
Descending Triangle
The opposite configuration defines a Descending Triangle, where the lows of each leg of the price movement can be connected with a horizontal line, while each peak formed by a leg is consecutively lower. A breakout below the lower horizontal line is an indication of the consolidation of the downtrend.
Ascending and Descending Triangles with PatternSurfer
With PatternSurfer, ascending and descending Triangle structures are automatically identified, as well as information such as the Location of the price (at upper or lower lines). With this data, traders can analyse the direction of expected price movement with Triangles, price continuation or potential reversal. PatternSurfer’s unique methods of finding stronger Triangles reduces the chances of false breakouts.