An Ascending Triangle Chart Pattern is a bullish continuation pattern. It is formed when prices are trapped between a rising trendline and a horizontal resistance line. The trendline and resistance line are forming a triangle, a right angle triangle even.
Ascending Triangle Chart Pattern Example
The following things are important when identifying an ascending triangle:
- There should be an horizontal resistance line which has at least 2, but preferably more points where it is touched by price. In the example chart above we see a red resistance line which is touched 5 times.
- There should be a rising (or ascending) support line line which has at least 2, but preferably more points where it is touched by price. In the example chart above we see a green support line which is touched 5 times.
- Ideally the trend leading up to the pattern was rising, this is why the pattern is called a continuation pattern.
- Ideally the overall volume declines during the pattern formation.
The ChartMill Team