The Ascending Triangle is a variation of the symmetrical triangle. Ascending triangles are generally considered bullish and are most reliable when found in an up-trend. The top part of the triangle appears flat, while the bottom part of the triangle has an upward slant. Here is a Typical Ascending Triangle Pattern
- In ascending triangles, the stock becomes overbought and prices are turned back.
- Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back.
- Buying then resurfaces, although at a higher level than before.
- Prices eventually break through the old highs and are propelled even higher as new buying comes in.