I've noticed that many beginners in trading make mistakes with the ascending triangle, thinking it's always a signal to go up. In reality, it's more complicated.

An ascending triangle is when the price consolidates between an upward support line and a horizontal resistance line. The pattern usually appears during trends, and analysts often see it as a continuation signal. But here's the catch: the results can be completely different depending on the market situation.

For example, in 2020, Bitcoin formed an ascending triangle from April to July, then broke out upward. In September, Bitcoin retested the resistance line, confirming the continuation of the bullish trend. A classic scenario.

But there are opposite examples too. During the bearish market of 2018, an ascending triangle in Ethereum predicted further decline, not growth. Or consider the March-April 2020 period—there, a triangle was forming, but it signaled the end of the bear market and a reversal upward. See how relative everything is?

Now, about practical application. If you see an ascending triangle and want to profit from it, there's a method to calculate targets. In a bullish trend, measure the maximum distance between the upper and lower lines of the triangle, then add this distance to the breakout point on the upper line. In a bearish trend, the logic is reversed—you add the distance to the breakout point on the lower line.

What else helps? Watch trading volumes. If the ascending triangle forms with increasing volumes, it's a good sign—momentum will be stronger. If volumes are low, the breakout might be weak and unconvincing.

And most importantly—always use a stop-loss. Place it on the opposite end of the triangle. If the ascending triangle doesn't work as you expected and the trend reverses, you'll exit with minimal losses. This is basic risk management that protects your capital.