Ascending Triangle

An ascending triangle is a continuation chart pattern in technical analysis that typically signals bullish sentiment. It is formed when a stock's price creates a series of higher lows (indicating increasing buying pressure) while repeatedly testing a horizontal resistance level. The pattern creates a triangle shape with a flat top and a rising bottom trendline. As the two lines converge, the price range compresses, often leading to a decisive breakout. The pattern is considered bullish because buyers are willing to purchase at progressively higher prices (creating the rising support line), while sellers are defending a fixed resistance level. Eventually, buying pressure overwhelms the sellers, and the price breaks above resistance. The measured move target for an ascending triangle breakout is typically equal to the height of the triangle (the distance from the flat resistance to the lowest point of the pattern) added to the breakout point. Volume tends to decrease during the pattern's formation and should expand significantly on the breakout for confirmation. While ascending triangles resolve upward roughly 70% of the time, they can occasionally break downward, so traders typically wait for a confirmed breakout with volume before entering positions. The pattern can form over various timeframes from intraday to weekly charts.