Ascending Triangle
Chart PatternsA bullish continuation pattern with a flat resistance line and a rising trendline connecting higher lows. Price typically breaks upward through the flat resistance.
What Is an Ascending Triangle?
The ascending triangle is a chart pattern formed by a flat (horizontal) Resistance line at the top and a rising trendline connecting progressively higher lows at the bottom. The price compresses between these two lines, creating a triangle shape that narrows over time.
The higher lows show that buyers are becoming more aggressive with each bounce, willing to buy at increasingly higher prices. Meanwhile, the flat resistance shows there is consistent supply at that level.
Trading the Breakout
The ascending triangle typically resolves with an upward Breakout through the flat resistance. On EUR/USD, enter long when a candle closes above the resistance level. Place a stop below the most recent higher low (or the rising trendline). The target is the widest part of the triangle projected upward from the breakout.
Volume Pattern
Volume typically decreases as the triangle narrows and increases sharply on the breakout. A breakout on low volume is suspect and more likely to result in a Fakeout. The ascending triangle is considered a continuation pattern during an Uptrend, but it can also appear at market bottoms as a reversal formation.
Related Terms
Descending Triangle
A bearish continuation pattern with a flat support line and a falling trendline connecting lower highs. Price typically breaks downward through the flat support.
Symmetrical Triangle
A continuation pattern where converging trendlines connect lower highs and higher lows, creating a narrowing range. It typically breaks in the direction of the prior trend.
Bull Flag
A bullish continuation pattern where a sharp rally (the flagpole) is followed by a brief downward-sloping consolidation (the flag). Price typically breaks upward to continue the trend.