The Ambiguity of Ascending Triangle and Descending Triangle.

Some website and books refer ascending triangle to bullish pattern and descending triangle to bearish pattern. The following description is posted on a website:

  1. Ascending Triangle – Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.
  2. Descending Triangle – Regardless of where they form, descending triangles are bearish patterns that indicate distribution.

However, I have encountered these triangles may possess double meaning for KLSE stocks. Attached are the success and fail examples for these triangles:

Ascending triangle with bullish pattern.
Ascending triangle with bearish pattern. It does break the resistance but continue to short afterwards.
Descending triangle with bearish pattern.
Descending triangle with bullish pattern.

Trade safely.

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Author: Gerald Koh