What is the Ascending Scallop
The Ascending Scallop is a multiple candlestick chart pattern that indicates that a bullish continuation is taking place. This pattern forms close to the peak of an uptrend in the market.
Understanding the Ascending Scallop
The Ascending Scallop is a candlestick pattern that consists of multiple candlesticks. The first candlestick is bullish and indicates that the market is in an uptrend.
The next few candlesticks reveal a slight market retracement before climbing back up into another bullish candlestick. This slight retracement forms the shape of a scallop and is where this pattern got its name.
How to Trade Ascending Scallop
Once when price close above resistance line (horizontal red line) you should open buy position. Place stop loss below pattern, a few pips bellow bottom.