Ascending Triangle
The Ascending Triangle is a bullish continuation pattern that forms during an uptrend. It features a horizontal resistance line and an ascending support line, indicating that buyers are becoming more aggressive while sellers remain consistent at a specific price level.
Best Timeframe
1H - 4H
Average Move
5-12%
- 1
Horizontal Resistance: Price repeatedly tests the same resistance level, creating a flat top line.
- 2
Rising Support: Each successive low is higher than the previous one, forming an ascending support line.
- 3
Volume Pattern: Volume typically decreases as the pattern develops, showing consolidation.
- 4
Convergence: The two lines converge, creating a triangle shape with decreasing volatility.
- 5
Breakout: Price breaks above the horizontal resistance, usually with increased volume.
Entry Point
Enter long position on breakout above resistance with volume confirmation
Stop Loss
Place stop loss below the most recent higher low on the ascending support line
Target
Measure triangle height at widest point, project above breakout level
- Pattern should have at least two touches on both resistance and support lines
- Volume should increase significantly on the breakout for confirmation
- The pattern typically takes 1-3 months to complete on daily charts
- False breakouts can occur, so wait for volume confirmation
- Works best when formed within a broader uptrend
- Entering on false breakouts without volume confirmation
- Drawing trend lines with insufficient touch points
- Ignoring the broader trend context when trading the pattern
- Setting targets too aggressively beyond the measured move
- Not respecting the ascending support line for stop loss placement
Test your knowledge with interactive exercises and real market examples.