Technical Analysis
Ascending Triangle
A bullish continuation (or reversal) pattern with a flat resistance top and rising support lows, signalling accumulation and an imminent breakout.
Key rules
- Flat resistance top with at least 2 touches
- Rising support line with at least 2 higher lows
- Volume contracts during formation, expands on breakout
- Target = breakout level + triangle height (widest point)
- Can also appear as a reversal at the bottom of a downtrend
An ascending triangle forms when price creates a series of higher lows against a flat horizontal resistance level. This indicates that buyers are progressively willing to pay higher prices while sellers are defending a fixed level — until the buying pressure overwhelms the resistance.
**Structure** - Upper boundary: flat horizontal resistance (at least 2 touches) - Lower boundary: rising trendline connecting higher lows (at least 2 touches)
**Breakout** A close above the flat resistance on expanding volume is the classic entry signal. The measured move target is the height of the triangle (widest point) added to the breakout level.
**Volume Pattern** Volume typically contracts as the triangle forms and expands significantly on the breakout. A breakout on low volume is suspect.