What Does Ascending Triangle Mean?|
A bullish chart pattern used
in technical analysis that is easily recognizable by the distinct shape
created by two trendlines. In an ascending triangle, one trendline is
drawn horizontally at a level that has historically prevented the price
from heading higher, while the second trendline connects a series of
increasing troughs. Traders enter into long positions when the price of
the asset breaks above the top resistance. The chart below is an example
of an ascending triangle:
An ascending triangle is generally considered to be a continuation
pattern, meaning that it is usually found amid a period of consolidation
within an uptrend. Once the breakout occurs, buyers will aggressively send
the price of the asset higher, usually on high volume. The most common
price target is generally set to be equal to the entry price plus the
vertical height of the triangle.
An ascending triangle is the bullish counterpart of a descending triangle.