I've noticed that many beginners in crypto trading place too much faith in the power of chart patterns. For example, an ascending triangle is one of the most popular indicators, but people often interpret it incorrectly. They think that once such a pattern appears, the price will definitely go up. In reality, it's much more complicated.

An ascending triangle forms when the price consolidates between an upward support line and a horizontal resistance line. This usually happens during periods when the trend is already moving in a certain direction. Technical analysts call it a continuation pattern — meaning the overall trend is highly likely to continue.

But here's the catch. Look at the examples with Bitcoin in 2020. From April to July, the price formed an ascending triangle, then broke out of it at the end of July. It seemed like a classic breakout, and indeed, in September, the price returned to test this line again as support. The trend continued upward. But this is not a universal scenario.

Recall 2018 and the bear market. Ethereum also formed an ascending triangle, but instead of rising, it fell even more. Then, in March-April 2020, when Ethereum again formed a similar pattern, it truly signaled a trend reversal upward. See how much depends on the context?

Now about practice. If you decide to trade based on an ascending triangle, there is a proven method for calculating targets. In a bullish trend, find the maximum distance between the upper and lower lines of the triangle, then add this distance to the upper line — this will be your target price. In a bearish scenario, do the opposite: measure the distance between the lines and subtract it from the breakout point on the lower line.

What else is important. Pay attention to trading volumes. If the ascending triangle forms on rising volumes — that's a good sign, indicating momentum. If volumes are low, the breakout may be weak and insufficiently strong. And always use stop-losses. Place them on the opposite end of the trend so that if something goes wrong, you exit with minimal losses instead of waiting for the technical target to be reached. An ascending triangle is a powerful tool, but without proper risk management, it can be costly.