Ascending Triangles

As of 09/29/2023

Indus: 33,508 -158.84 -0.5%

Trans: 14,969 -17.13 -0.1%

Utils: 817 +1.02 +0.1%

Nasdaq: 13,219 +18.04 +0.1%

S&P 500: 4,288 -11.65 -0.3%

YTD

+1.1%

+11.8%

-15.6%

+26.3%

+11.7%

Targets Overview: 09/15/2023

34,500 or 33,150 by 10/15/2023

15,500 or 14,200 by 10/15/2023

880 or 800 by 10/15/2023

13,750 or 12,700 by 10/15/2023

4,425 or 4,175 by 10/15/2023

Chart Pattern Indicator:

on 9/29/23

As of 09/29/2023

Indus: 33,508 -158.84 -0.5%

Trans: 14,969 -17.13 -0.1%

Utils: 817 +1.02 +0.1%

Nasdaq: 13,219 +18.04 +0.1%

S&P 500: 4,288 -11.65 -0.3%

YTD

+1.1%

+11.8%

-15.6%

+26.3%

+11.7%

Targets Overview: 09/15/2023

34,500 or 33,150 by 10/15/2023

15,500 or 14,200 by 10/15/2023

880 or 800 by 10/15/2023

13,750 or 12,700 by 10/15/2023

4,425 or 4,175 by 10/15/2023

Chart Pattern Indicator:

on 9/29/23

Bulkowski on Ascending Triangles

In my book Encyclopedia of Chart Patterns

Encyclopedia of Chart Patterns 2nd Edition book.

, you can read the complete treatment of ascending triangles, including identification guidelines, focus on failures, statistics, trading tactics, and a sample trade.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

Ascending Triangle: Overview

The ascending triangle is a decent performer after an upward breakout but suffers after a downward breakout.

Ascending Triangle: Important Bull Market Results

The above numbers are based on more than 1,400 perfect trades. See the glossary for definitions.

Ascending Triangle: Identification Guidelines

Characteristic	Discussion
Price trend	Can be any direction leading to the chart pattern.
Shape	Triangular. Prices move between two converging trendlines.
Trendlines	Two trendlines bound prices; the top trendline is horizontal and the bottom one slopes upward.
Crossing	Price must cross the pattern from side to side, filling the triangle with price movement, not white space.
Touches	Price must touch one trendline at least three times, the other at least twice, forming distinct valleys and peaks.
Volume	Trends downward at least 78% of the time.
Breakout	Upward 63% of the time and 64% of the way to the triangle apex (for both breakout directions).

Ascending Triangle: Trading Tips

Trading Tactic

Explanation

The Measure Rule

Measure rule

Compute the height from the price of the horizontal trendline (B) to the lowest valley in the pattern (A) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. The associated link provides more information.

Stop

Place a stop loss order on the side opposite the breakout unless that would be too far away. Click the link on the left for stop placement information. For example, if the breakout is upward, a stop at any of the minor lows on side A would work well. For downward breakouts, use the price of B as the stop price.

Rise

Patterns with a intermediate-term rise (between 3 and 6 months) leading to the triangle show price rising an average of 49% after an upward breakout.

Score your chart pattern for
performance by clicking here

Throwback and Pullbacks

Throwbacks and pullbacks hurt post breakout performance. The links on the left define terms. For performance information on throwbacks and pullbacks, click the associated link.

Ascending Triangle: Example

The figure shows an example of an ascending triangle. Price bounces between two converging trendlines, the top one is horizontal and the bottom one slopes upward.

To calculate a price target, subtract the price of the lowest valley in the chart pattern (A) from the price of the top trendline (B). That gives the height. Multiply the height by the 'percentage meeting price target' from the Important Bull Market Results table near the top of this page, and add it to the price of the top trendline B. In this example, point C makes for a good stop location.

For downward breakouts, compute the height in the same manner only subtract the height from C.

Other Ascending Triangle Examples