Technical Glossary / Chart Patterns
Ascending Triangle
A flat ceiling and a rising series of lows, usually traded on a break of the ceiling.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
An ascending triangle has horizontal resistance and higher lows. Buyers are willing to pay up, while sellers defend one price. The classic reading is bullish, completed by a close through the flat top. It can also break down, so the flat top is a level, not a promise.
How to identify it
At least two similar highs and two rising lows. The highs should be flat enough to call one price. The lows should step up.
Bullish reading
A close above the ceiling, after higher lows, is the long setup. Risk can sit under the last higher low. A measured move uses the height of the triangle added to the break.
Bearish reading
A close under the rising support line fails the bullish pattern. Triangles break the wrong way often enough that the break, not the shape, is the signal.
Common mistakes
Drawing the flat line through one wick and a different price, so the "ceiling" is really a slope.
Limitations
The pattern gets crowded near the apex, where a break has little energy left. Breaks in the first two-thirds of the formation are the ones technicians prefer.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.