The Ascending Triangle Pattern | Definition

What is an Ascending Triangle Pattern?

An Ascending Triangle Chart Pattern is a bullish continuation pattern in Technical Analysis. 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.

Is the Ascending Triangle Pattern Bullish?

The pattern is indeed bullish as price has touched the upper resistance line multiple times. The ascending triangle is a base formation. A base formation or consolidation is a pause in the trend where the prices stabilize around certain levels. A potential breakout may happen once the resistance line is broken and the existing trend continues. Therefor the pattern is called a bullish continuation pattern

Ascending Triangle Chart Pattern Example and Properties



The following things are important when identifying an ascending triangle:
  1. 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.
  2. 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.
  3. Ideally the trend leading up to the pattern was rising, this is why the pattern is called a continuation pattern.
  4. Ideally the overall volume declines during the pattern formation.

How to find and trade Ascending Triangle Patterns.

The ascending triangle pattern is a supported in our stock screener. Please check out the article on trading and finding the ascending triangle pattern for detailed trading strategies.

Other triangle chart patterns.