Ascending Triangle Pattern: Bullish Breakout

Pattern structure

Flat horizontal resistance at the top, rising support at the bottom forming a triangle. Each successive low is higher than the last (buyers are getting more aggressive), while the top stays capped. Eventually the triangle resolves — usually to the upside as buyers overwhelm the static supply line.

Execution

Entry on the breakout above horizontal resistance with volume. Stop below the most recent higher-low. Target: the height of the triangle at its widest, projected from the breakout. Ascending triangles have statistically better breakout-to-upside behaviour than symmetrical triangles, but the edge is small — 60% vs 50%.

When they fail

Fail if the horizontal resistance is tested too many times (4+) — each test erodes supply, sure, but if the triangle takes too long, the underlying setup goes stale. Also fail if overall market is weak — no pattern fights a macro downtrend.