Ascending Triangle Pattern
A flat resistance with rising support below. Typically breaks upward in an existing uptrend.
Trading rules at a glance
- Entry
- Long on break and close above the flat resistance.
- Stop Loss
- Below the most recent higher low or below the rising trendline.
- Target
- Triangle height (highest to lowest point) projected upward from the break.
How the Ascending Triangle forms
Price tests a flat resistance repeatedly while each pullback creates a higher low. The pattern typically resolves with a break above resistance.
How to trade it
- Identify in an uptrend — continuation patterns favour the prior trend direction.
- Confirm at least two touches on the flat resistance and two higher lows.
- Enter long on close above resistance with volume confirmation.
- Trail stops below new higher lows as price advances.
Common mistakes to avoid
- Fading the pattern to trade the range.
- Entering before the break (false signals during consolidation).
- Ignoring volume — breakouts on low volume often fail.
Real-world example
Tesla stock formed an ascending triangle from October 2021 to November 2021 with resistance near 1,200 and a rising support line. The upward break targeted the post-earnings highs.
Best timeframes
The Ascending Triangle works best on 1H, 4H, Daily charts. It can appear on lower timeframes but signal reliability drops significantly below the 1-hour chart.
Related patterns
Descending Triangle
Flat support with falling resistance above. Usually breaks downward in a prevailing downtrend.
Bull Flag
A sharp rally (the pole) followed by a tight, downward-sloping consolidation (the flag). Breaks higher to continue the rally.
Bear Flag
Mirror image of a bull flag. Sharp decline (pole) followed by an upward-sloping consolidation (flag). Breaks downward.
Cup and Handle
A rounded base (the cup) followed by a shallow pullback (the handle), then a breakout to new highs. A William O'Neil classic.