Friday, October 1, 2010
Thursday, September 30, 2010
Author: Ilango | Posted at: 7:57 AM | Filed Under: ascending triangle |
An ascending triangle has a definitive bullish bias before the actual breakout. On the ascending triangle, the horizontal line represents overhead supply that prevents the Index from moving past a certain level. It is as if a large sell order has been placed at this level and it takes time, thus preventing the price from rising further. Even though the price cannot rise past this level, the reaction lows continue to rise. It is these higher lows that indicate increased buying pressure and give the ascending triangle its bullish bias.