Ascending Triangle

Identification Criteria

• A horizontal resistance line connects at least two roughly equal highs.
• A rising trendline connects at least two successively higher lows.
• The two lines converge, narrowing the trading range as the pattern matures.
• Requires a minimum of four touch points (two on each line) to be considered a well-formed triangle rather than a random range.
• Volume typically contracts as the triangle narrows, then expands on the breakout.

Formation Logic

The flat top shows that a specific price level is acting as a firm supply ceiling. The rising lows show that buyers are willing to pay progressively more each time price pulls back, rather than waiting for the previous low. This combination — steady resistance against increasingly eager buyers — is read as accumulation that typically resolves upward.

Breakout / Confirmation Rule

Confirmation requires a decisive close above the horizontal resistance line, ideally with a volume increase. Because the pattern is directionally biased but not guaranteed, a close back below the most recent higher low after a breakout attempt should be treated as a failed signal.

Measured-Move Price Target

A commonly used, purely illustrative measured-move technique: measure the height of the triangle at its widest point (the vertical distance between the first high and the first low), then project that distance above the breakout point.

Common Pitfalls

• A triangle that is too flat on both sides is better classified as a rectangle, not an ascending triangle.
• Late-stage breakouts, occurring very close to the apex where the lines converge, tend to be lower-conviction and more prone to whipsaw.
• Ascending triangles can also break down; the bullish bias is a tendency observed in practice, not a certainty.