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.

RELATED TERMS
  1. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  4. Triangle

    A technical analysis pattern created by drawing trendlines along ...
  5. Breakout

    A price movement through an identified level of support or resistance, ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
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