Definition
An ascending triangle is a chart pattern bounded by a horizontal line of resistance along its top and an upward-sloping trendline connecting a series of rising minor lows. Price oscillates between these two boundaries until it breaks free, most often through the flat top.
The shape reflects a market where buyers are willing to pay progressively higher prices while sellers consistently defend one fixed price level. The narrowing range signals that the standoff is reaching a resolution.
Why it matters
How it works
Each time the price reaches the horizontal top, sellers absorb the buying and push it back. But each subsequent dip stops at a higher level, drawing the rising trendline. As the apex nears, the contest compresses and one side gives way. A close above the resistance line on increased volume confirms the breakout.
Traders frequently estimate a target by applying the measure rule: take the height of the triangle at its widest and project it upward from the breakout point. Volume that contracts inside the pattern and expands on the break adds confidence.