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:
Investopedia Says:
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 Links:
Learn how to read these formations of horizontal trading patterns. Triangles: A Short Study in Continuation Patterns
Follow along with one of ChartAdvisor's failed trades and learn from our mistakes. Tales From The Trenches: Hindsight Is 20/20
Here we pay some attention to the triangle, usually one of the first chart patterns that a novice technician learns. Continuation Patterns - Part 1
Take a closer look at triangles, which appear in ascending, descending and symmetrical forms Continuation Patterns - Part 2
Take a closer look at Ascending and Descending Triangles. Continuation Patterns - Part 3
