Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

The Ascending Triangle is indeed a pattern that typically indicates a continuation rather than a corrective formation. Corrective patterns usually reflect a pause in the prevailing trend, where the market consolidates before a potential reversal or continuation.

In contrast, the Ascending Triangle typically signifies a bullish continuation pattern, suggesting that buyers are increasingly willing to purchase at higher prices while sellers remain resistant, leading to a potential breakout to the upside.

On the other hand, corrective patterns like Flats, Head and Shoulders, and Symmetrical Triangles represent various ways that prices can consolidate or correct after a significant move, often indicating indecision in the market before deciding on a direction. A Flat pattern alternates between upward and downward movements, a Head and Shoulders pattern suggests a reversal after an uptrend, and a Symmetrical Triangle indicates a consolidation that could lead to a breakout at the end of the formation. Understanding these characteristics helps differentiate between patterns that signal market corrections and those that indicate continuation.