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The ascending triangle is a variation of the symmetrical triangle, but it has different forecasting implications. In the graph below, you can see the upper trendline is horizontal, or flat, and the lower trendline is ascending. This continuation pattern indicates buyers are more aggressive than sellers. It is a bullish pattern, which is usually resolved by a breakout to the upside.

Whereas the symmetrical triangle is a rather neutral pattern, the ascending triangle has a more definite forecasting implication no matter where it is found in the trend structure. More often than not, it is bullish. The bullish breakout is signaled by a decisive close above the flat upper trendline. In the case of this and all upside breakouts, volume should see a noticeable increase upon the breakout. And once the breakout occurs, there should be a return move back to the flat upper line which is now the support level. The return move should take place on lighter volume.

The measuring technique for the ascending triangle simply involves measuring the height of the pattern at its widest point (points A & B on the graph) and projecting that vertical distance from the breakout point (point C). This technique uses the volatility of the price pattern to determine a minimum price objective.

Ascending Triangle as a Bottom: Most often the ascending triangle appears as a continuation pattern, but sometimes it can show up as a bottoming pattern. It may appear near the end of a downtrend, but is still considered bullish when the completion of the base is indicated by the breaking of the upper trendline. The ascending triangle, as well as the descending triangle, are sometimes referred to as right angle triangles.

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Happy Trading,






Andy Swan
Co-Founder, DaytradeTeam

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