An ascending triangle is a trend continuation pattern, most often signaling a bullish breakout.
How It Looks
Upper boundary: a horizontal resistance level.
Lower boundary: a rising trendline (price forms higher lows).
Meaning:
Buyers are gradually increasing pressure → resistance weakens → a breakout to the upside becomes likely.
How to Trade the Ascending Triangle
Method 1: Aggressive
Entry: at the breakout of the resistance level.
Stop-loss: below the rising trendline.
Take-profit: measure the height of the triangle’s base and project it upward from the breakout point.
Method 2: Conservative
Wait for a breakout and retest of the resistance (which turns into support).
Entry: after the retest confirms the level as support.
Stop-loss: below the new support level.
Take-profit: same as Method 1 (height of the triangle).
Tips for Higher Accuracy
Works best in an uptrend.
Volume: typically decreases during formation and increases sharply at breakout.
The longer the pattern forms, the stronger the potential move after the breakout.
Conclusion:
The ascending triangle is a reliable continuation pattern. Trading it with volume confirmation and using a breakout-retest strategy increases the chances of success.