Ascending Triangle Pattern
Definition of an Ascending Triangle
An ascending triangle is a bullish chart formation. They can take place in both bull and bear markets, but often times they are a continuation pattern of an existing uptrend.
- Two swing highs which are close in terms of price
- Two swing lows where each low is higher in terms of price
- Volume drops off during the formation of the ascending triangle
To calculate the price target for a breakout of an ascending triangle chart pattern, you take the difference of the highest and lowest price points in the formation, and you add this to the breakout level.
Charting Example of an Ascending Triangle
Notice how the price began to congest prior to the breakout.