Ascending triangle
bullish · continuation pattern
An ascending triangle is a bullish continuation pattern formed by a flat horizontal resistance level and a rising trendline of higher lows. It indicates buyers are willing to pay progressively higher prices while sellers defend a fixed cap. A breakout above resistance on expanding volume usually triggers continuation.
Formation rules
- Prior trend is up
- Horizontal resistance touched at least twice
- Rising trendline of at least three higher lows
- Breakout above resistance on expanding volume
How to trade it
Buy the breakout candle close above resistance. Stop below the most recent higher low. Measured target = triangle's height projected above the breakout level. The pattern's edge degrades in the final third of the triangle — late-stage triangles often resolve in the opposite direction of their visible bias.
Common pitfalls
- Triangles in the late stage frequently fail in the opposite direction
- Breakout without volume is suspect
- Pattern works best in trending environments, not chop
Statistical context
Bulkowski gives ascending triangle a ~72% upside breakout rate with volume confirmation in bull markets, lower in bear regimes.
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