Stock Technical Analysis – Ascending Triangle

A pattern that you will see swing traders use time and time again to make money is the Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line.... Stock technical analysis does not have to be complex or even difficult. In this lesson I will teach you more about the Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... and how to trade it.

Stock Technical Analysis Basics

There are only three money making categories of chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... to trade: oversold, continuation, and breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind.... This is also the progression that many chart patternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... evolve through like the Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... pattern.

The Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... is a continuation pattern. Each progression in the Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... is shown below.

The bullish Inverse Head and ShouldersThe inverse head and shoulders pattern is a chart pattern that traders look for when trying to identify potential reversals in the trend of a security. It consists of three troughs... pattern starts out as an oversold pattern and alternates between oversold and continuation patterns while it slowly builds the strength to end the pattern in an explosive breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... which releases the built up energy.

The classic Double BottomThe double bottom chart pattern is a reversal pattern that indicates the exhaustion of a downward trend and the potential for an upward trend. pattern is a series of oversold and continuation patterns that may result in a breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind....

Technical Analysis of Stock Trends

Even an uptrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... is really a sequence of oversold, continuation, and breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... patterns that repeat over and over again so as to form a series of higher lows and higher highs.

Stock Technical Analysis Tutorial

Here is something that you will not find in a stock technical analysis tutorial pdf. Try and view as many patterns as you can in terms of fitting into one of three patterns: oversold, continuation, or breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind.... This simplifies your trading down to the essence of what are money making patterns. If you can’t find an oversold, continuation, and then breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... pattern in a chart you are looking at then it’s probably not a chart you should be trading.

Most money making patterns begin with the oversold pattern which is why the oversold pattern is, and will always be, the best chart patternChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... to trade.

Frequently Asked Questions about Stock Technical Analysis – Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line...

What is a ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line...?

An ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... is when two trendlines converge where the upper line is horizontal while the lower line is rising.

The ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... is a bullish continuation pattern that ultimately transitions into a breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... pattern.

The psychology of the ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... pattern is that the bulls are able to take the price up to the horizontal resistanceA horizontal resistance chart pattern is a type of chart which shows how price movement follows a certain pattern when price reaches a certain level. The pattern forms a resistance... level repeatedly while the bears are slowly losing the ability to take the price back to the previous swing low.

Leavitt Brothers posted the awesome video below called Chart PatternsChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement... – Ascending TrianglesAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line....

PerfectStockAlert.com posted the excellent video below called Ascending TriangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... Chart PatternChart patterns are visual formations on price charts that occur due to the behavior of buyers and sellers in the market. These patterns often signal potential future price movement....

How to trade ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line....

The way most people trade the ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... pattern is to wait for a breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... above the horizontal resistanceA horizontal resistance chart pattern is a type of chart which shows how price movement follows a certain pattern when price reaches a certain level. The pattern forms a resistance... level.

Sasha Evdakov shows this method for trading the ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... in the excellent video below.

I do NOT trade the ascending triangleAn ascending triangle chart pattern is a chart pattern used in technical analysis that is characterized by a flat upper trend line... like most people. If you want an advantage over most traders, you have to do things a little differently.

The breakoutBreakout patterns occur when a stock price moves beyond a defined level of support or resistance with increased volume, signaling the potential start of a new trend. A breakout ind... pattern is my least favorite pattern because you are always arriving to the party a little late that way. In other words, you are always chasing and buying after a lot of other traders. Instead, it is better to position on an oversold RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ....

This is yet another reason why the oversold pattern is the best pattern to trade no matter what pattern forms on the chart.

What is a pivot point in stock technical analysis?

A pivot point is the average of the high, low, and closing prices from the previous trading day.

The most common method for calculating pivot points is called the five-point system. The five-point system uses the previous day’s low, high, and close, plus two resistance levels and two support levels (5 points total) to calculate the pivot point. Here is the calculation:

R2 = P + (H – L) = P + (R1 – S1)
R1 = (P x 2) – L
P = (H + L + C) / 3
S1 = (P x 2) – H
S2 = P – (H – L) = P – (R1 – S1)

Where H = the high, L = the low, and C = the close.

R1 and R2 are the resistance levels, P is the pivot point, and S1 and S2 are the support levels.

Most popular charting software will calculate the pivot point for you.

For example, on StockCharts.com, scroll down to the “Overlays” section and select “Pivot Points”:

When a stock is trading above its pivot point, there is a bullish bias. When a stock trades below its pivot point, there is a bearish bias.

Like all technical indicators, a pivot point system should be used with other forms of chart analysis. When Fibonacci retracementFibonacci retracement is a fundamental tool in the arsenal of technical analysts and traders. Rooted in the mathematical principles of the Fibonacci sequence, this technique is wid... levels or an oversold RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... occur at a pivot point, S1, S2, R1, or R2 level, the more success you will have trading off of it.

MoneyShow.com posted the awesome video below called Common Mistakes When Trading with Pivot Levels.

Accendotraders posted the excellent video below called How to Use Pivot Points for Day Trading.

When does technical analysis not work?

Technical analysis does not work when a surprise external news event acts as a catalystIn stock trading, a catalyst refers to an event, news, or announcement that causes a significant and often rapid price movement in a stock or the broader market. Catalysts can be p... to move the stock either higher or lower. Support and resistance lines, channel lines, and candlestickCandlestick chart patterns are visual representations of price movements in financial markets, typically stocks, commodities, or currencies, during a specific time period. Each "ca... patterns will react suddenly and will violate key levels because of a surprise external event. Think 911 in the U.S., or the Tsunami in Japan.

Technical analysis does not work when a single entity is manipulating the market such as with a penny stock pump and dump. Technical analysis is a reflection of the psychology of all market participants. When a single entity is manipulating the market, price no longer reflects market psychology but instead the psychology of the manipulator.

Technical analysis does not work if you are looking at the wrong technical indicators in the wrong kind of market. There are two major types of markets: a trading market, and a trendingUnderstanding market trends is a critical component for businesses conducting industry analysis. For example, Netflix identified early on the growing demand for streaming services ... market. In a trading market you need to put more of a weighting on your oscillator indicators like the RSIIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ..., MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ..., ROCThe Rate of Change (ROC) indicator is a momentum-based technical analysis tool used to measure the percentage change in a security’s price over a specified time period. The ROC i..., and CCIThe Commodity Channel Index (CCI) is a momentum-based oscillator that measures the difference between a security's price and its moving average, normalized by the average deviation.... In a trendingUnderstanding market trends is a critical component for businesses conducting industry analysis. For example, Netflix identified early on the growing demand for streaming services ... market, you need to put more of a weighting on your trend following indicators like the accumulation/distribution line, ADXThe Average Directional Index (ADX) stands as a cornerstone indicator in the toolkit of technical traders, offering insights into the strength of market trends. Developed by Welles..., and AROON.

Manny Backus posted the excellent video below called TrendingUnderstanding market trends is a critical component for businesses conducting industry analysis. For example, Netflix identified early on the growing demand for streaming services ... or Trading?