Ascending Triangle / Ascending Triangle
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A triangle pattern formed by a horizontal upper resistance line and a rising lower support line. It indicates that buyers are gradually gaining dominance, and an upward breakout through the resistance line confirms the continuation of an uptrend. While it most commonly appears during uptrends, it can also function as a reversal pattern when appearing during downtrends.
Enter long when price clearly breaks above the upper resistance line on a closing basis. It is important to confirm a volume increase at the time of breakout.
Project the widest part of the triangle (from the first resistance touch to the first low) upward from the breakout point to determine the price target.
Place a stop-loss slightly below the most recent low within the triangle (the last lower support line touch point).
Volume should gradually decrease during formation and surge at the upward breakout. A breakout without volume may be a false signal.