Definition
Ascending Triangle shows buyers becoming more aggressive (higher lows) while resistance holds flat. This compression typically resolves with an upside breakout. Volume usually decreases during formation and expands on breakout.
Formula
Price Target = Resistance + (Resistance - Initial Support)
Example
Resistance at $50 with support rising from $45 to $48. The narrowing range suggests building pressure. A break above $50 on volume targets $55.
FAQ
What is Ascending Triangle?
A bullish pattern with flat resistance and rising support.
How do you calculate Ascending Triangle?
A common formula for Ascending Triangle is: Price Target = Resistance + (Resistance - Initial Support)
Why is Ascending Triangle important?
Ascending Triangle helps investors evaluate chart patterns and make more informed decisions.