HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Ascending Triangle Pattern in Trading


Investors tend to use different tools to define market direction - technical indicators, candlestick, and chart patterns are all key to successful trading.  There is a wide range of chart patterns, and one of them is triangles. Overall, we can pinpoint three types of triangles: ascending, descending, and symmetrical. The ascending triangle is one of the simplest and well-known patterns. So, today we will talk about the ascending triangle and teach you how to recognize and trade it. 

Triangles in Trading: What Is It?

Before we talk in-depth about the ascending triangle, we should take a closer look at triangle patterns in general. Triangle is a continuation pattern. It signals the market will coincide in the direction it had before the pattern was formed (except the symmetrical one). Also, any triangle is a period of a corrective price. The market consolidates and, only after, moves in the direction of the main trend. 

The pattern is shaped by two trendlines - support and resistance levels. The pattern is considered to be formed if support and resistance levels connect at least five highs and lows. It can be either three highs and two lows or two highs and three lows. 

Triangle is a continuation pattern that is shaped by two trendlines. The pattern is considered formed if support and resistance levels connect at least five highs and lows.  There are three types of triangles - ascending, descending, and symmetrical. The idea of any triangle pattern is that the price should break either support or resistance, showing the market direction. 

Why is it a triangle? Because the price moves in the shape of a triangle. Look at the picture below to see for yourself. 

Triangles: Short Description

Here are short descriptions of triangle types

A descending triangle is opposite to the ascending triangle. The market forms lower highs - thus, the resistance line moves down. At the same time, the support line is horizontal. If the market falls below the bottom line, the downtrend will continue. Later on, we will tell more about the differences between ascending and descending triangles. 

A symmetrical triangle doesn't match the idea of the previous direction continuation. Within the symmetrical triangle, the price forms higher lows and lower highs. Thus, support and resistance levels meet at one point. There is no clarity on the further market direction, and traders simply wait for the breakout. Thus, if the price breaks above the resistance level, the market will move upside. If the support line is broken, the market will drop. 

You will learn about the ascending triangle in the sections below. 

What Is an Ascending Triangle Pattern, and How Does It Work? 

An ascending triangle is a continuation chart pattern that relates to a group of triangle patterns. It's a bullish pattern that signals an upward movement. As you can see, there is horizontal resistance, but the lows go up so the price creates higher lows. 

An ascending triangle is a bullish continuation chart pattern that signals an upward movement. The signal of the pattern works if the price breaks above the resistance level.

Why is it a bullish pattern? There is a resistance level, and it seems the market won't go upwards. Still, as there are higher lows, bulls have the strength to push the price above the resistance. However, it's not always the case. There are situations when bulls don't have the power to push the price and the market moves sideways or goes downside. 

It can happen due to unexpected market events. Imagine the market has formed an ascending triangle of the EUR/USD pair, but the ECB provides comments on the loose monetary policy. The Euro won't have the power to move up. 

Ascending Triangle: Real Example on the Forex Market 

Each chart created for educational purposes has an ideal form of the pattern. However, it's unlikely that you will find the same shape on the real market. That's why we are showing a real example that will show you how the ascending triangle looks like. 

On the hourly chart of the US dollar index, you can see the ascending triangle. 

Advantages and Disadvantages of an Ascending Triangle

Any pattern or technical indicator has pros and cons. The ascending triangle is no exception.

Advantages

Disadvantages

  • Found on any timeframe 
  • Used for any asset
  • Easily applied
  • Easy to learn 
  • Possible fake signals
  • Not common 
  • Wrong direction
  • Not exact

The ascending triangle is one of the easiest patterns. All you need to do is to draw two lines connecting highs and lows. Also, you don't need to remember lots of information about the pattern. It provides easy signals and works similarly for any asset, from Forex to stocks. Another advantage is that you can find the pattern at any timeframe.

However, there are limitations of this pattern. The first one is fake signals - the price can break above the resistance, but the market won't keep rising, moving below the resistance level. As we have mentioned, bulls can lack the force to push the price above the resistance. Although you can find the ascending triangle at any timeframe and for any asset, it's a rare pattern. 

Also, you will never find a perfect triangle on the price chart. For instance, it is sometimes unclear whether it's a triangle or a wedge. 

How to Determine an Ascending Triangle

The ascending triangle is a simple pattern. Still, you should keep in mind some points that can identify it. Below you can find the conditions:

Ascending and Descending Triangles in Trading: Where the Difference Lies

Ascending and descending triangles are the opposite types of the triangle pattern. Below you can find the exact differences.

Characteristics

Ascending triangle 

Descending triangle 

Signal 

Upcoming uptrend 

Upcoming downtrend 

Resistance 

Horizontal 

Lower highs 

Support 

Higher lows 

Horizontal 

The main difference between ascending and descending triangles is the market direction. The ascending pattern predicts the price to ascend in the foreseen future. Buyers wait for a breakout and open a position. As for the descending triangle, sellers anticipate the price to descend, continuing the downtrend. 

The main difference between ascending and descending triangles is the market direction. The ascending pattern predicts the price to ascend and vice versa. 

Patterns look different. The ascending triangle has a flat upper boundary, while the descending triangle has lower highs. As for the bottom line, the ascending triangle has a slope of higher lows, and at the same time, the bottom line of the descending pattern lies horizontally. 

How to Use an Ascending Triangle in Trading - the Best Strategies

We have a couple of the most effective strategies for you to trade the ascending triangle successfully. 

Strategy #1: Wrong Ascending Triangle

We already mentioned that the ascending triangle signals an upward movement. Still, it's not a strict rule - the market can move in the opposite direction if bulls are not strong enough. This strategy will tell you how to deal with the wrong ascending triangle.

Strategy #2: Real Triangle

This is the most common strategy of the ascending triangle. 

Conclusion: the Ascending Triangle in Trading

Let's round up. The ascending triangle is a continuation chart pattern that signals an upward movement after the resistance level's breakout. Overall, the pattern is simple. You just need to connect highs and lows with support and resistance levels. 

Still, you can’t always count on the triangle to work as you expected. That's why you should have enough experience to deal with the pattern. For that, you can use a trading demo account of Libertex broker. The account provides a wide range of instruments: from Forex to CFDs. Get a chance to upgrade your skills in a safe environment. 

Why to trade with Libertex?

FAQ 

Let's sum up the information by answering the following questions. 

How to Trade an Ascending Triangle?

To trade the ascending triangle, you should open a buy position when the price breaks above the resistance level. 

What Is the Ascending Triangle in Stocks?

The ascending triangle is the same for any asset you trade. Thus, the triangle in stocks is the bullish continuation pattern that signals a high probability of the uptrend. 

When to Use an Ascending Triangle?

You should use the ascending triangle any time you see it on the chart. It's not the everyday pattern, so you should wait for its formation.

What Does an Ascending Triangle Mean?

The ascending triangle means there is a high chance the market will rise after the resistance breakout. 

What Is an Ascending Triangle Breakout?

An ascending triangle breakout is the key point of the pattern when the price breaks above the resistance level and confirms bulls' strength. 


RELATED

Do you follow the Trend Lines?

Looking for ways to boost your technical analysis skills? Keep reading to see if trend lines are part of your trading strategy!

Introduction to technical analysis in forex trading

Learn how traders use technical analysis to enhance their strategies and make informed trading decisions...

Trading Chart Patterns: The how-to guide

One helpful skill for traders is learning how to trade chart patterns. But what is chart pattern analysis and how reliable is it? Let’s explore the most common patterns recognized...

What Is a Bear Trap in Trading and How to Handle It?

You may have heard of a bull trap, but if you haven't, we recently covered this topic in an article. In this guide, we'd like to tell you about the opposite event in the market: a bear trap...

Support and Resistance Levels: Comprehensive Overview and Practical Approaches

Support and resistance levels are paramount concepts, pivotal in navigating Forex and various financial markets. These levels underpin myriad trading strategies and form the foundational framework...

Bull Flag Pattern in Trading - Open Long Trades

In the world of technical indicators and patterns, finding a reliable, workable tool that would help you predict price direction is challenging. However, they exist...

Moving averages explained

Learn how to trade with one of the most popular Forex indicators - Moving Averages. In this article, we explain how to use moving averages as a technical analysis...

Depth Of The Market: Definition And Meaning

Depth of the Market is a special technical indicator developed for the MetaTrader 4 terminal. It is designed to monitor the current price movement and also to determine the supply and demand zones...

The Ascending Triangle Pattern in Trading

Investors tend to use different tools to define the market direction. Technical indicators, candlesticks and chart patterns are all key to successful trading...

Technical Analysis Tools

Read on to find out about some of the most popular technical analysis tools that traders can use, such as Bollinger Bands, MACD, and RSI...

Mastering The 50-Day Moving Average And Its Applications in 2023

In the ever-evolving realm of financial markets, gaining a deep understanding of various tools and indicators is essential for deciphering price trends and making informed decisions...

Sentiment analysis for Forex traders

There are many ways to level up your Forex skills, but defining the trends is a necessity if you want to place successful orders. So, how do you identify a trend...

Technical analysis: what separates the pros from the schmoes

In essence, technical analysis hinges on the study of past price movements and trends to predict future market developments. It first emerged as a tradition...

What Is MACD Indicator and How It Works?

The Moving Average Convergence Divergence (MACD) is a technical indicator that measures a relationship between two exponential moving averages...

How to Calculate the Value of One Point in Forex

A point is a very important concept for calculating possible profit or loss in financial markets. When conducting transactions, you need to clearly understand how much...

Best Trading Indicators: A Guide to the 17 Most Popular Technical Analysis Tools

In the intricate world of financial trading, one can easily get overwhelmed by the enormous amounts of data flooding the markets daily. Technical analysis offers a structured approach...

A matrix to understand the Gold market

US investment bank Morgan Stanley produced a research note yesterday detailing that they see a period where real US bond yields rise in the near-term...

Unlocking the Power of Technical Analysis in Trading

Technical analysis, often regarded as a cryptic endeavor for newcomers to the world of capital markets, is an essential tool for traders and investors seeking insights...

Art of Trend Analysis Revealed: Strategies and Types

In the intricate world of financial markets, understanding trends is akin to deciphering a vital code. Trends act as a compass, guiding the trajectory of asset prices and heavily influencing trading decisions...

Everything To Know About a Crypto Bear Market

When you hear the term "bear market", it typically means that a market has dropped by over 20%. This harkens back to Wall Street, which uses the term bear market to describe when large amounts of losses have been realized...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.