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Ascending Channel Meaning

An ascending channel is a bullish continuation pattern characterized by two upward-sloping, parallel trendlines that connect a sequence of higher highs (upper line) and higher lows (lower line). The structure suggests that the asset is trending upward within a defined range, with traders buying support and selling resistance.

Ascending channels help identify:

While typically bullish, the pattern can break either upward (trend continuation) or downward (reversal).

A downside break may signal weakening momentum, while an upside break indicates accelerated strength. Traders often use volume analysis or additional indicators to confirm signals and manage false breakouts.

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