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The ascending and descending triangles are two chart patterns that can be used to confirm a continuation or to detect a reversal; the former is a bullish chart pattern, whereas the latter is a bearish chart pattern.
As we previously said, the Ascending Triangle is a bullish pattern; it is formed by two trendlines. The first trendline is drawn horizontally at the highest price level and it forms the resistance line; le second trendline connects higher lows or successive troughs. When the price breaks the resistance line or the first trendline of the ascending triangle, the chart pattern tells us that the price may continue to increase and that traders should initiate a long position; this is the breakout. If the price breaks below the second trendline or the non-horizontal line, the chart pattern tells us that the price may continue to decrease and that it is time to create a short position.
The Descending triangle is the opposite of the ascending triangle. It is a bearish pattern, formed by two trendlines, where the first is a resistance (horizontal line) drawn at the lowest price level and the second is a trendline that connects lower highs or successive peaks. Technical analysis traders should initiate a long position when the asset price breaks the non-horizontal line (bullish signal), and a short position when the asset price breaks the resistance line (bearish signal).
Finviz releases a list of U.S stocks whose prices are forming an ascending or descending triangle. This list is downloaded, separately for the ascending and descending triangles, and saved in a database. This database can be used in screening, charting, trading systems...
The same website releases also several other chart formations and technical patterns. You can for example download head and shoulders pattern signals using the following downloader: Head and Shoulders Pattern.
