Ascending Triangle

What is an 'Ascending Triangle'

An ascending triangle is a bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs. Traders enter into long positions when the price of the asset breaks above the top resistance. The chart below is an example of an ascending triangle:

Ascending Triangle

BREAKING DOWN 'Ascending Triangle'

An ascending triangle is generally considered to be a continuation pattern, meaning that it is usually found amid a period of consolidation within an uptrend. Once the breakout occurs, buyers will aggressively send the price of the asset higher, usually on high volume. The most common price target is generally set to be equal to the entry price plus the vertical height of the triangle.

An ascending triangle is the bullish counterpart of a descending triangle.

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RELATED FAQS
  1. What trading opportunities does an ascending triangle offer?

    Recognize and utilize an ascending triangle formation on a chart to determine trading opportunities that anticipate a market's ... Read Answer >>
  2. Where do traders place orders when they identify ascending triangles?

    Identify the formation of an ascending triangle pattern to enter a trade to take advantage of a continued uptrend or a market ... Read Answer >>
  3. How do I find stocks developing ascending triangle patterns?

    Learn more about the types of computer programs and software packages that can help traders scan the market for specific ... Read Answer >>
  4. Where do traders place orders when they identify descending triangles?

    Learn how to identify descending triangles and how traders use recognition of that chart pattern to place trades before the ... Read Answer >>
  5. What trading opportunities does a descending triangle offer?

    Learn about the trading opportunities that may be presented with a descending triangle chart pattern, including when traders ... Read Answer >>
  6. How do traders identify descending triangle patterns?

    Learn how to identify a descending triangle pattern on a security or index's price chart, and discover why traders consider ... Read Answer >>
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