TA School

Ascending Triangle

Master the classic bullish continuation pattern that signals buyer accumulation through rising support trendlines.

intermediate level9 min read

Interactive Model

Interactive Visual Walkthrough

Ascending Triangle Continuation

Step 1 of 4
Flat Resistance Ceiling

Price repeatedly rallies to a flat resistance barrier at $108. Each time it hits this zone, sellers reject it.

Why it matters: This horizontal resistance represents a supply wall where a large seller or group of sellers is offering shares.

What is an Ascending Triangle?

The Ascending Triangle is a highly popular bullish continuation pattern that typically forms during an established uptrendUptrendA market direction characterized by a sequence of higher highs and higher lows.Read full glossary entry →. It represents a period of consolidation where buying pressure is steadily building against a specific level of resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry →.

Pattern Structure

The structure is defined by:

  1. Flat ResistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry → Line: A horizontal line connecting at least two peaks at a similar price level.
  2. Rising SupportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry → Line: An ascending trendlineTrendlineA bounding line drawn across a chart to connect swing lows in an uptrend or swing highs in a downtrend, acting as dynamic support or resistance.Read full glossary entry → connecting two or more higher lows.
  3. The Apex: The point where the two trendlines converge.

Psychology Behind the Pattern

  • Supply Wall: The flat resistance line shows that a seller or group of sellers is offering a significant amount of shares at a fixed price.
  • Aggressive Buyers: Buyers step in earlier and earlier on each pullbackPullbackA temporary price pause or moderate retracement against the primary trend direction.Read full glossary entry →, creating higher lows.
  • The Squeeze: As the pattern nears the apex, buyers overwhelm the supply at resistance, trigger short stops, and breakoutBreakoutA price movement through an established support or resistance level. A breakout is often accompanied by increased volume, signaling strong momentum.Read full glossary entry → to the upside.

Identification Rules

  • UptrendUptrendA market direction characterized by a sequence of higher highs and higher lows.Read full glossary entry →: A clear prior uptrend must be present.
  • Two Highs & Lows: Must have at least two touches of the flat resistance and two touches of the rising supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry →.
  • BreakoutBreakoutA price movement through an established support or resistance level. A breakout is often accompanied by increased volume, signaling strong momentum.Read full glossary entry →: Price must break and close above resistance on high volumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry →.

Trading Setup

  • Entry: Buy when a candle closes above the flat resistance line.
  • Stop-Loss: Place below the rising trendlineTrendlineA bounding line drawn across a chart to connect swing lows in an uptrend or swing highs in a downtrend, acting as dynamic support or resistance.Read full glossary entry → or the last minor low.
  • Target: Add the max height of the triangle to the breakout price.

Key Takeaways

  • •The Ascending Triangle is a bullish continuation pattern characterized by a flat resistance line and a rising support line.
  • •It shows that buyers are becoming increasingly aggressive, buying at higher lows.
  • •The pattern is confirmed when the price breaks and closes above the flat resistance line.
  • •Volume typically contracts as the pattern forms and expands during the breakout.
  • •The profit target is projected by adding the widest height of the triangle to the breakout point.
Knowledge CheckQuestion 1 of 5

What type of pattern is the Ascending Triangle?

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