# Binary Options and Ascending Triangles

Ascending Triangles, just like the name suggests, are bullish patterns that are characterized by the fact that price should break towards the upside when formations like that appear and are identified on the chart. Every issue that will be dealt in this article is valid when it comes to the descended triangles and only that one of those refers to the situations with bullish conditions while the second referrers to the situations with bearish conditions.

Any triangle that appears, travels on the five different waves and they should be marked with letters A-B-C-D-E and there is one thing that needs to be considered when dealing with this situation and that is the fact that price is bound to make almost a horizontal line when it comes to the upper trend line or the b-d trend line.

This situation is similar to the situation with the price building energy aiming to break higher and it seems to be characterized by the series of several high lows which means that price should attempt to break the levels of some of the previous lows only to result in a fail every time and to go back and turn the other way until the previously mentioned b-d trend line is broken.

### Triangle Rules

When it comes to the ascending triangle, first we need to take a look at the rules that regulate the triangle and one of those rules says that at least waves are required to retrace more than 50% when these three waves are compared to some of the previous wave as well as the fact that the already mentioned b-d trend line needs to be broken in less time that it takes to a wave to be formed in this situation.

Whenever we are faced with the trading with a triangle we should be able to consider the fact of the measured move or as it is called differently, the thrust, because this is the minimum distance that the price should travel after the trading triangle gets broker.

That kind of measured move or the thrust is characterized by 75 percent that is taken from the longest lasting wave of the triangle which is marked with the letter A and it is projected towards the upside after the wave A has ended. Depending on the place in which the triangle is formed in the process, there could be two types of this move. One type of the move is the impulsive move and the second type of the move is corrective move but there is one issue that needs to be the same for both types of the move and that is the distance.

### Ascending Triangles

Since the ascending triangles, in their definitions, means that the price is moving towards upside in a time when the triangle gets broker, we should have in mind that we should consider the buying call options in the situation when the b-d trend line gets broken when the date of expiration that is being given for the time frame when the ascending triangle actually appears.

Besides the issue that we have already mentioned in the previous parts of this article, trading with a triangle represents a special kind of experience because a trader needs to look for many different things and this actually makes this very difficult to comprehend in cases when the triangle gets broken or when it is time to look for the measured moves or the thrust that were also mentioned in previous parts of this article.

Even though the ascending triangle is actually breaking the higher courses, the expiration date needs to be determined based on the time frame when the triangle actually appears as well as on the wave that the triangle is on – and here is an example. Let’s say that you have found a triangle that seems that it will break higher and let’s say that it is on the fourth wave of the rising impulsive move or rather the A or B wave and that is moving in the zigzag fashion and that the triangle appears on the daily charts – in that case, there would be no point in looking for the expiration dates that are short termed.

### Trading Put Options after the Third Leg of the Ascending Triangle

In this case, what a trader should be looking for are actually the Fibonacci ratios that appear between the triangle legs and every person dealing with this kind of business needs to know or at should already know that the triangle actually has five legs A-B-C-D-E. In the case when there are two or three legs that have been completed fully, then that is the time when a trader has the option of trading put options in the ascending triangle. However, the expiration date for the put options should always be shorter than the expiration date for the call option.

### Managing Money when Trading with Ascending Triangles

This issue brings us to the next issue that is also where important when considering the rules of the ascending triangle and that is the issue of managing the money in cases when a trader is trading a total portfolio of binary options. In this case, it is important to say that hedging is an available option because no trader is able to trade with both, the put and the call options.

### On Longer Horizons trade Put Options After B Wave

In cases when triangle is creating bigger time frames such as the daily or four hours chart, a trader is presented with the indication that the put option trading is an option after the wave B. Additionally, in this case, trader will also have the opportunity of trading call options with different expiration dates such as one month but a trader needs to have in mind that the triangle is heading towards the breaking higher in the end.

Fibonacci relations are very important in this case because there is no triangle that those relations and there is one clue that traders need to know and that is the fact that wave B in any formations of the triangle will not be able to reach the end when it is at 61,8 percent are of the wave A. When this happens, you are not looking at the ascending triangle and because of that you might end up with your options expiring out of money.

### Keeping in Mind the Trend lines

And finally, we come to the trend lines, or more precisely the a-c and the b-d trend lines. Even though it is not supposed to break until the very end, the a-c trend line may get a broker several times and this issue depends on the type of the ascending triangle that you have been dealing with while trading with these options.

According to the theory developed by Elliot Waves, triangle like that can appear as the fourth wave or the B wave but what is most like is the fact that it is just being a part of one or more very complicated correction which can be ruining or doubling or even tripling combination.

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