How to Trade the Ascending Continuation Pattern

The Ascending Continuation pattern signals a pause in an uptrend before the price continues moving higher. It’s marked by higher lows pushing against a consistent resistance level, often forming an ascending triangle shape.

What is an Ascending Continuation?

It occurs when price action consolidates with a series of higher lows while resistance remains constant or slightly rising. This creates building pressure, often resulting in a breakout to the upside.

How to Identify the Pattern

• Uptrend leading into consolidation.
• At least two higher lows forming an ascending support line.
• Flat or slightly rising resistance line.
• Volume often decreases during formation and spikes on breakout.

Entry and Exit Strategy

• Entry: Buy on breakout above horizontal resistance.
• Stop Loss: Below the most recent higher low.
• Target: Project the triangle’s height from breakout level.

Common Mistakes

• Entering before breakout confirmation.
• Ignoring false breakouts on low volume.
• Misidentifying the pattern during a weak or choppy market.
• Placing stops inside the triangle, risking premature exit.

Chart Pattern

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