Ascending Triangle

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DEFINITION of 'Ascending Triangle'

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. How do I find stocks developing ascending triangle patterns?

    Ascending triangles are commonly occurring bullish continuation patterns. Traders look for stocks that exhibit ascending ... Read Full Answer >>
  2. What trading opportunities does an ascending triangle offer?

    An ascending triangle is a chart pattern that is usually considered a continuation pattern signaling the market is preparing ... Read Full Answer >>
  3. Where do traders place orders when they identify ascending triangles?

    An ascending triangle is usually considered a continuation pattern that occurs within an uptrend, although it can sometimes ... Read Full Answer >>
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    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
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    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
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    The two commonly used methods for doing a tax-free spinoff are either to distribute shares of the spinoff company to existing ... Read Full Answer >>

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