Trading code for ascending triangle consolidation pattern

In technical analysis chart patterns, the triangle convergence pattern is an important reference for judging trend continuation. Among them, the ascending triangle is often observed during an uptrend and signals a bullish outlook, making it one of the key patterns that many traders focus on.

Pattern Formation Logic

The formation process of the ascending triangle convergence pattern reflects changes in market forces. The support line at the bottom is rising, indicating that the lows are gradually getting higher, which suggests that buying power is continuously strengthening. At the same time, the upper resistance line remains horizontal, with sellers encountering resistance in that area. This structure represents a tug-of-war that gradually favors the buyers.

Why It Is Usually Bullish

The ascending triangle commonly appears during the intermediate stage of an uptrend. As buying strength gradually accumulates, the price may encounter resistance near the resistance line, but the support at the bottom continues to rise, indicating that even if a pullback occurs, there is stronger buying interest. This pattern typically signals that the price will break through the upper resistance and continue to rise.

Confirmation Conditions for Breakout

Simply recognizing the pattern is not enough; the key to trading lies in confirming the breakout. When breaking above the upper trendline, volume must be considered, as it is an important basis for judging the authenticity of the breakout. When a breakout occurs accompanied by increased volume, it confirms the validity of the bullish signal.

Calculation Method for Profit Targets

Many traders are concerned about where the target price is after entering a position. A practical calculation method is to use the vertical distance between the horizontal resistance line and the support line as a baseline. The target price after the breakout is usually the breakout point plus this height.

The ability to identify triangle convergence patterns is very important for traders, but pattern recognition is just the first step. Factors such as volume, overall trend background, and risk management also determine the success or failure of the trade.