The ascending triangle pattern means that the stock price shows strong selling pressure at a certain level. The stock price rebounds from a low point to a level and then falls back. However, the purchasing power of the market is very strong, and the stock price rebounds before returning to the last low. , this situation continues to cause the stock price to gradually narrow along with a resistance horizontal line. If you connect each short-term fluctuation high point, you can draw a horizontal resistance line; and each short-term fluctuation low point can be connected with another upward-sloping line, which is an ascending triangle.

The stock trading volume gradually decreases throughout the formation process of the pattern. Usually, the trading volume in the rising part of each wave in the ascending triangle is larger, while the trading volume in the falling part is smaller.

The most obvious thing in common among all triangle forms is that the amplitude of stock price fluctuations gradually decreases from left to right, and the defense lines of the long and short parties gradually approach, until the two sides come into contact, forming a breakthrough in the stock price. . The ascending triangle trend is an upward trend. From a morphological point of view, the long side is dominant and the short side is weak. The strong buying orders from the long side gradually raise the bottom of the stock price, while the short side has insufficient energy and only resists at a horizontal neckline. From the K-line chart, it can be drawn that the low points are connected to the low points, and a support line sloping upward from left to right appears, while the high points are connected to the high points, basically in a horizontal position. Simply looking at the graph, it makes people feel that the stock price will break through upward at any time, forming a wave of upward trend. However, technical analysis cannot be single-minded. Generally, morphologists focus on the stock price pattern, but they will not ignore the changes in trading volume within the pattern. The trading volume within the ascending triangle pattern also decreases from left to right, but when it breaks through the horizontal neckline upward, there must be large trading volume, otherwise if the trading volume is too small, the stock price will appear The consolidation pattern leads to a failure pattern graphically. If the trading volume within the ascending triangle pattern is irregularly distributed, the probability of maintaining consolidation is greater.

Because the ascending triangle is a strong consolidation, the bottom of the stock price is gradually rising, and bulls are enthusiastic about buying. If the ascending triangle breaks through successfully, the breakthrough position will be the best buying point, and there will be a wave of decent gains in the future. If the ascending triangle fails to break through, it will take over the strong consolidation within the pattern and form a rectangular consolidation, and the probability of forming a head pattern will not be too great.

The market meaning of the ascending triangle pattern

The ascending triangle shows the competition between buyers and sellers of stocks within this range, but the power of the buyers has a slight upper hand. The seller keeps selling at a specific stock price level, although he is not eager to ship, but he is not optimistic about the market outlook. Therefore, every time the stock price rises to the ideal selling level, the seller is ready to sell. In this way, selling at the same stock price forms a horizontal supply line. However, as the purchasing power of the market strengthens, buyers do not wait for the stock price to fall back to the last low, but are more eager to buy, thus forming a demand line sloping upward to the right. In addition, it may also be a planned market behavior. It cannot be ruled out that some people intend to temporarily lower the stock price in order to achieve the purpose of absorbing large amounts of money at low prices.

Key points of the ascending triangle pattern

1. The ascending triangle is a consolidation pattern. Most ascending triangles appear in an upward trend and imply a tendency to break upward.

In general, the ascending triangle and the symmetrical triangle in the upward trend finally break upward, and the descending triangle in the downward trend finally breaks upward. They are all based on trend breakthroughs and can be regarded as more classic mid-term patterns. Following form.

2. When breaking through the horizontal supply resistance at the top of the ascending triangle, if there is a surge in trading volume, the breakthrough point will be a better short-term buying opportunity. This form is a consolidation form, with a general upward breakthrough pattern, but it may also develop in the opposite direction. That is, the ascending triangle may eventually break through downward. In actual trends, false breakthroughs often occur. There are three common identification methods: first, the closing price crosses the breakthrough line principle; second, after the breakthrough, it stands firm above the breakthrough line and the breakthrough range reaches 3% of the longest side of the triangle. The third is the cooperation of large trading volume when breaking upward.

3. The ascending triangle appears in a downward trend, and there are variables in the direction of the breakthrough under the actual trend. In this form, you cannot simply operate based on the form itself, but you need to use it in practice. Combined with the moving average system to determine the stage of a certain trend at a certain time. The most ideal operation method is to wait for an effective breakthrough to occur. Before the breakthrough, there is often a certain degree of gambling in the operation.

4. The measurement method of the minimum increase after the ascending triangle breaks upward is the same as that of the symmetrical triangle. The increase after the breakthrough is close to the vertical distance of the widest side of the triangle, that is, starting from the first short-term rebound high point, draw the Draw a line parallel to the bottom. After breaking through the pattern, it will rise to this line at the speed before the beginning of the pattern, or even beyond it.

Use the ascending triangle to grasp the buying and selling points

In the ascending triangle, the obvious buying point is the last point in the formation process of the triangle, and the intervention point after an effective breakthrough. In some cases, there will be a pullback after breaking through the triangle, and it is also an ideal opportunity to intervene when the breakthrough line is pulled back. It should also be noted that an ascending triangle in an upward trend often indicates short-term strength.

Generally speaking, the ascending triangle will choose a breakthrough direction somewhere between 1/2-3/4 of its lateral width. If it still fails to break through beyond this area, the strength of the triangle's trend breakthrough will weaken, and at the same time The variables in the direction of the breakout will also increase. In other words, the sooner the ascending triangle breaks out, the fewer mistakes will occur. If the stock price repeatedly reaches the peak of the pattern and then falls out of the pattern, this signal of breakthrough is not credible. At this time, everyone is mainly waiting for the final breakthrough direction in actual operations.

The ascending triangle generally appears during a stock rally and is a strong relay technical form. When the ascending triangle breaks through the top horizontal resistance line, there is a short-term buy signal. The ascending triangle must be accompanied by large trading volume when it breaks through. After the ascending triangle prototype is formed, the earlier it breaks upward, the greater the room for upside; if it fails to break through, a double top pattern may be formed. When breaking through the pressure line upward, trading volume must be enlarged to be more effective.

Attack point: heavy volume breakthrough point, gap upward breakthrough point, retracement support point.

Correction conditions:

1. From the first low point to the top before the formation of the triangle, it has risen by 70-100%, indicating an upward trend;

2. The consolidation time of the triangle is basically the same as or longer than the first round of rising time;

3. There is an obvious "zig-zag" adjustment pattern of 3 waves 3 or 5 waves 5 running inside the triangle;

< p>4. Especially when the triangle falls back to important moving averages, such as the 30-day, 60-day, 120-day, 250-day moving average or the middle track of the Bollinger Band, it is better to counterattack and break through;

5. KDJ indicators try to Above 50, the strong trend is at an angle of 15 degrees;

6. After a round of continuous consolidation, the 10-minute K-line platform increased the volume and went up. There was a process of increasing the volume - shrinking the volume - increasing the volume again, and the BOLL was on the middle and lower track. And when KDJ is around 20, it is better to break upward.

Notes on ascending triangle patterns

1. When the pattern is forming, there may be slight erroneous changes, and it may fall below the pattern slightly and then return to the pattern. , at this time technical analysts must re-revise a new "rising triangle" pattern based on the third or fourth short-term low. Sometimes the form may mutate and form other forms.

2. Although the "rising triangle" implies that there are more opportunities for an upward breakthrough, there is also the possibility of a downward trend. Therefore, investors only take corresponding buying and selling decisions after the pattern has an obvious breakthrough. If it falls below 3%, investors are advised to sell temporarily.

3. The "rising triangle" breaks through the resistance upward. If there is no support from the surge in transactions, the signal may be wrong. Investors should give up this instruction signal and continue to wait and see the further development of the market. If the pattern breaks down, there will be no increase in trading volume.

4. The sooner the "Ascending Triangle" breaks through, the fewer mistakes will occur. If the stock price repeatedly reaches the peak of the pattern and then falls out of the pattern, this signal of breakthrough is not credible.

5. "Ascending triangle" is a strong long technical signal. There are generally two buying opportunities: one is to ambush and buy the bottom during the callback. This kind of buying point usually fluctuates repeatedly within its triangle area. second, follow up in time when there is a breakthrough. This kind of buying point is to wait for an upward breakthrough (the K line stands on the upper triangle line), and is more suitable for short-term operations.