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

INVESTOPEDIA EXPLAINS '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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    Ascending triangles are commonly occurring bullish continuation patterns. Traders look for stocks that exhibit ascending ... Read Full Answer >>
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  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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    Book value of equity per share (BVPS) is a ratio used in fundamental analysis to compare the amount of a company's shareholders' ... Read Full Answer >>
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    Stockholders' equity is one method to evaluate a company's worth. It tends to work better for companies in established industries ... Read Full Answer >>
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