Ascending And Descending Triangles by Thomas Bulkowski
Last issue, symmetrical triangles and the ways to trade with this particular chart formation were the topic at hand. This month, we present two more variations of the triangle, the ascending and descending triangles, their attributes and how to use them in your investment decisions.
Triangles are a class of chart formations that serve as a pictorial description of a market that is marking time. Often, a triangle represents a consolidation after a trend, allowing for the news driving the trend to be fully discounted by the market participants before the trend resumes. However, a triangle may also denote the final stage of the trend, setting up a reversal. Ascending and descending triangles can fill both roles. First, letís take a look at the ascending triangle.