![]() ![]() To the right of A, price closes below the up-sloping trendline, constituting a breakout. The triangle is outlined in a thin blue line on the far left of the chart. More Busted Ascending Triangles: Triple BustsĮxelon, pictured on the right, is a good example of a triple busted ascending triangle. If price fails to move at least 10% in the new direction, then it is a triple busted ascending triangle. Price then moves at least 10% in the new direction.After an upward breakout, price closes below the bottom of the ascending triangle (C) or above the top after a downward breakout.Price must move less than 10% before reversing (the move from the red line at D to E, in this example).Price busts a confirmed ascending triangle for the first time.Notice that priceĬontinues at least 10% below the blue trendline (which shows the lowest valley in the pattern).įor a double bust, look for these elements. When it closes below the lowest valley in the ascending triangle, it busts the chart pattern for the second time. Less than 10% above the highest peak in the triangle. When price closes above the top of the triangle, it busts the downward breakout for the first time. This one has price closing below the up-sloping trendline for a downward breakout. The ascending triangle forms between the two red trendlines. The figure to the right shows an example of a double busted ascending triangle in Oneok. More Busted Ascending Triangles: Double Busts Price continues moving in the new direction by at least 10%.įor the last point, 4, if price fails to move more than 10%, then it could be forming a double busted ascending triangle.For downward breakouts, price closes above the top of the ascending triangle. For upward breakouts, price then closes below the bottom of the ascending triangle (B).Price must move less than 10% before reversing.Price breaks out either upward or downward from an ascending triangle by closing outside of the trendline border.If price continues to move lower by at least 10%, then the chart pattern becomes a single busted ascending triangle. When price closes below the bottom of the triangle, which occurs at B, However, price does not rise far before it reverses. Price pierces the top trendlineĪt A and confirms the chart pattern with an upward breakout. The ascending triangle is outlined with red trendlines. I show a chart of a busted ascending triangle in Bassett Furniture on the daily scale. ![]() ![]() In a bull market, price averages a drop of 13% (upward breakout, downward bust) and 36% (downward breakout, upward bust), but can be much higher if it busts just once. When price moves no more than 10%, reverses direction and closes beyond the side opposite the breakout, it busts the chart pattern. Price can breakout of an ascending triangle in any direction. Encyclopedia of Chart Patterns has a table in most chapters ![]()
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