Technical
Analysis
of the United States
Cannabis Market
196
Ascending Triangle:
An ascending triangle visually looks like a triangle whereas the top is flat and the bottoms candles are ascending or rising up. This makes the charts prices appear tighter and tighter as time goes on. You might be thinking that because the prices keep bouncing off the top as resistance that this is it - this is as good as it gets. That is not the usual case, however. This is a continuation pattern and in fact, a bullish one that you will want to keep on your radar. While the highs may be temporarily stagnant the bottoms are becoming higher and higher, and eventually, the bottoms get so close to the top of the triangle that they push through the resistance and thus create a bullish breakout as the once resistance (top of the triangle) has been broken. Of course, seeing this pattern does not guarantee that the following price movements will be bullish - as we know only death and taxes are guaranteed in life. However, it does leave the probability of a technical breakout for the bulls more likely than not.