ASCENDING TRIANGLE PATTERN
The ascending triangle pattern is the bullish chart pattern. In this, all the swing highs will be at the same level and each low will be higher than the previous low. With each candle, the price keeps shifting higher but stays under the resistance zone. This implies that the number of buyers is slowly increasing and the impact of sellers is decreasing. Once the swing high breaks out, the price could move significantly higher.
What should be the target and stop loss in the ascending triangle pattern?
In an ascending triangle pattern, when the stock breaks the resistance level a second time and the stock rises after breaking the resistance level, then should buy the stock. Our stop loss will be below the support level of that stock, and our target should be double 1-2% of the stock price. So that we can make a good profit.
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