This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
A well known bullish formation and continuation pattern called the ascending triangle occurs during an uptrend and is constituted of two trend lines where the first one is a resistance line (horizontal line) and the second one connects two or more troughs.
In technical analysis, the ascending triangle formation is visually easily recognizable and it is often used by traders and technical analysts in different markets including the Stock Market, Forex Markets and Futures Market.
This trading pattern is traded by entering a long position when the security's price closes above the top resistance line. Some traders buy the security as soon as it breaks the resistance without waiting the end of bar's formation.
As a continuation pattern, the ascending triangle occurs in an uptrend after a period of consolidation. During this period, volume usually decreases and then suddenly increases (This is not a mandatory condition for the formation of this technical pattern) when the stock or security crosses above the resistance line of the ascending triangle pattern.
Once the trader enters/buys his position, the resistance line of the ascending triangle becomes a resistance and therefore acts as a limit stop. After an ascending triangle breakout, technical analysts usually seek for exiting their positions when it hits the limit (the old resistance level, which becomes a support level) or when it moves above a threshold that corresponds to the height of the triangle plus the buy price.
Example:
If during the formation of the ascending triangle the close price of the stock oscillated between 20$ and 30$, where 30$ represents the resistance line, then the target price is equal to the price at which the trader has bought the stock (31$ for example) plus the maximum triangle range, which is equal to 10$ (30$ - 20$). The Profit target limit is equal to 41$
The current technical analysis indicator detects ascending patterns using the advanced trading rules syntax.
The indicator name is "AscendingTriangle" and it has four parameters. These parameters are detailed in the description of the descending pattern indicator which can be downloaded here Technical Analysis Continuation Pattern: Descending Triangle Indicator.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
