What is an Ascending Triangle?
Ascending Triangle
Forex Trading Glossary
Quick Answer: An ascending triangle is a bullish continuation pattern with horizontal resistance and rising support. It shows buyers gaining strength, typically breaking upward.
What is an Ascending Triangle?
An ascending triangle is a continuation pattern where horizontal resistance caps price while higher lows compress underneath. The structure often resolves with a breakout in the direction of the prior trend.
Characteristics
- Flat ceiling: Multiple touches of the same resistance level build pressure.
- Rising trendline: Each pullback forms a higher low, tightening the range.
- Volume behaviour: Activity often contracts during the build and expands on the breakout.
Projection Technique
Measure the vertical height of the pattern and add it to the breakout level to map an initial target. Adjust expectations if higher timeframe resistance sits nearby.
Trading Ideas
- Trade in the direction of the prevailing trend; ascending triangles in downtrends are less reliable.
- Enter on a close above resistance or during a retest of the breakout level.
- Keep stops below the most recent higher low.
- Monitor for failed breakouts that fall back inside the structure.
Related Terms
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