Introduction
BigShort helps you trade ascending and descending triangle breakouts with precision. Using DarkPools, MomoFlow, SmartFlow, and NOF you can see what the big money is doing in advance and validate breakouts. With BigShort, you can boost your ability to make money and improve trading consistency for these patterns.
What Is a Triangle Breakout?
Triangle patterns form as the price consolidates between converging trendlines. An ascending triangle indicates bullish pressure, while a descending triangle suggests bearish pressure. A breakout from these triangles often leads to a large price move that can be traded.
How to Identify the Setup - Ascending Triangle
Draw the Trendlines
Identify converging trendlines to form the triangle.
Note the horizontal
An Ascending Triangle is formed from a horizontal top and ascending bottom connecting the higher lower. This is critical and differentiates the ascending triangle from the bearish rising wedge pattern
Monitor the Squeeze
Observe the narrowing price range as the triangle forms. As the price gets closer to the right end of the triangle, the stock is more likely to breakout.
BigShort Provides Advanced Warning
BigShort lets you see in advance of the breakout if institutions are participating give you maximum confidence in your entry.
Use increasing Net Options Flow to identify an increase in bullish options buying. Note the increase in large blue upward-pointing triangles, which indicates call buying (bullish) as well as the rising green line
Use Smartflow to notice the change institutional bullishness before the breakout. Note the change from red/pink (bearish) institutional selling to green/dark green (bullish). Note the change in the green line from downward sloping to upward.
In this case, bullish net option flow and smart money buying towards the end of the ascending triangle chart pattern both confirm the likelihood of a price breakout, setting up your clean, confident trade.
Get more profitable with BigShort
If Dark Pools (red oval, below) are present below the breakout, consider staying in the trade until the indicators begin to flip. The Dark Pools signify off market trades below the price and are strong bullish signals when in groups or when they are large.
BigShort enables you to make confident exits and results in making more profit from trading triangle patterns.
Descending Triangles
Reverse the above signals and directions to trade a descending triangle (bearish) pattern.
How to Trade the Setup
Entry Point: Enter as soon as the price breaks out of the triangle, confirmed by Momo, SF, and NOF signals.
Stop-Loss Placement: Place your stop-loss just inside the triangle to manage risk.
Profit Target: Project your initial target by measuring the triangle’s height, but let the institutional activity and market sentiment visible in BigShort keep you in the trade even longer if big money is supporting it.
Why trade Ascending Triangles with BigShort?
BigShort’s tools validate triangle breakouts by showing institutional confirmation through DarkPools, Momo, SmartFlow, and NOF. This integrated approach builds your confidence and trading consistency. Knowing when to make your entries and exits makes trading a successful triangle more profitable.
Disclaimer:
The information provided in this article is for educational and informational purposes only and should not be considered as financial advice. BigShort does not provide personalized investment recommendations or advice, and you should not make any trading or investment decisions based solely on the content of this article. Trading in the stock market involves significant risk, including the potential loss of your entire investment. Past performance of our tools, indicators, or any referenced strategies does not guarantee future results. Always do your own research and consult with a qualified financial advisor before making investment decisions. Use of our platform and its features is at your own risk.