Unlocking the RSI & Ascending Triangle: Hidden Trading Secrets Pros Won’t Tell You

The Relative Strength Index (RSI) and Ascending Triangle: A Power Duo for Forex Domination

Most traders use RSI like it’s a magic eight-ball, waiting for it to whisper “buy” or “sell.” And the ascending triangle? Half of them think it’s just a fancy name for a bullish pattern they saw in a random YouTube video. But here’s the deal—if you know how to properly combine RSI with the ascending triangle, you’re holding an unfair advantage over 90% of the market.

We’re diving into advanced strategies, hidden patterns, and some next-level ninja tactics that will change the way you trade forever. Buckle up (not literally, we don’t want you to feel trapped), and let’s get into it.

Why Most Traders Get RSI Completely Wrong

If RSI were a person, it would probably be exhausted from being misunderstood. Most traders just check if it’s overbought (above 70) or oversold (below 30), but that’s like assuming you’re rich just because you found $20 on the street.

Here’s where traders go wrong:

• They blindly follow the 70/30 rule without considering the market context.
• They don’t look at RSI divergences, which can scream “trend reversal” before the market even hints at it.
• They ignore RSI’s behavior during trending markets (hint: RSI in a strong uptrend doesn’t drop below 40, even on pullbacks).

The Pro Secret: Instead of just looking for overbought and oversold signals, use RSI as a momentum filter. A rising RSI in an uptrend? That’s a green flag. RSI making lower highs while price makes higher highs? That’s a hidden bearish divergence—and an early exit cue.

Ascending Triangle: The Pattern That Smart Traders Milk for Profits

Picture an ascending triangle like an impatient customer at a crowded coffee shop. Price is knocking on the same resistance over and over again, while buyers are creeping in at higher levels, refusing to let price fall. Eventually, the resistance level breaks—and when it does, the move can be explosive.

Why Most Traders Miss the Real Opportunity:

• They only focus on the breakout and miss the prime entry.
• They set stop losses too tight, getting wiped out by fake breakouts.
• They ignore volume, which can tell them if the breakout has real conviction.

The Pro Secret: The best entry isn’t at the breakout—it’s on the final bounce before the breakout. This allows for a tighter stop and a juicier risk-reward ratio.

The RSI + Ascending Triangle Killer Combo

Now, here’s where things get interesting. Combining RSI with an ascending triangle can give you sniper-like precision in timing your entries and exits.

How to Execute This Like a Pro:

1. Identify an Ascending Triangle on the chart (at least 3 touches on resistance, with higher lows forming).
2. Check RSI: Is it making higher lows while price consolidates? That’s bullish momentum building up.
3. Wait for RSI to Hover Around 50: Before the breakout, RSI should ideally be hovering between 45-55, indicating market equilibrium. When it starts moving above 60 before price breaks out—get ready.
4. Enter on the Last Bounce Before the Breakout: Don’t FOMO into the breakout candle. Instead, enter when price bounces off the rising trendline.
5. Use RSI Divergences for Exit: If RSI starts showing bearish divergence after a breakout (higher price, lower RSI), it’s time to start trailing your stop.

Real-World Example: EUR/USD Breakout Play

Let’s say EUR/USD has been forming an ascending triangle on the 4-hour chart. You notice:

• Price is hitting resistance at 1.1200 multiple times.
• RSI is making higher lows while price consolidates.
• Volume starts increasing on each bounce.

You wait for RSI to hit 60+ before price even breaks resistance. The moment price bounces off the lower trendline one last time—you enter. Within hours, EUR/USD blasts through resistance, and your well-placed entry gives you an insane 3:1 risk-reward trade.

Common Pitfalls and How to Avoid Them

1. Falling for Fake Breakouts

• Use volume confirmation: A real breakout should have higher-than-average volume.
• Wait for a candle close above resistance before committing fully.

2. Ignoring RSI Divergences

• If price is making higher highs but RSI is making lower highs, exit before the trend reverses.

3. Setting Stops Too Tight

• Give your trade some breathing room. Place stops just below the most recent swing low.

Final Thoughts: Why This Strategy Works Like a Charm

By combining RSI with the ascending triangle, you’re not just guessing market moves—you’re reading the market’s pulse. The ascending triangle tells you where the pressure is building, and RSI tells you whether the momentum backs up the move.

This is how the pros do it. They don’t rely on single indicators—they layer multiple signals together for high-probability trades. Now, you’re armed with a strategy that most traders overlook. It’s time to put it to work.

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Image Credits: Cover image at the top is AI-generated