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Ascending Triangle Chart Pattern

Patrick Stockdale
Written by Patrick Stockdale | May 2, 2022

What Is An Ascending Triangle?

An ascending triangle, also known as a "right-angle triangle", is a bullish price chart pattern that forms on the price charts of markets usually during an uptrend. It signals that the price of the market will potentially increase after the price breaks outs of the pattern.

The ascending triangle chart pattern most commonly forms as a bullish continuation chart pattern signaling a continuation in the bullish price trend.

However, it can also form as a price reversal pattern at the end of a bearish trend signaling a reversal from bearish to bullish price action.

Ascending Triangle Components

Ascending triangle components

In order to identify an ascending triangle chart pattern, there will need to be certain components visible on the price chart.

The components of an ascending triangle are:

  • An upper horizontal resistance level: The horizontal resistance level connects the swing highs together. It is this area where buyers will buy when the price breaks out of this level.
  • A lower rising support level: The rising support level connects the rising swing low levels together. This area is typically used as a stop-loss area for long trades.

Drawing an ascending triangle pattern involves combining these two components of an upper horizontal resistance level and a lower ascending/rising support level together.

Ascending Triangle Chart Pattern Examples

Below are visual examples of ascending triangle chart patterns on the price charts in different markets and on different timeframes.

Example Of An Ascending Triangle Pattern As A Continuation Pattern

Ascending triangle continuation pattern

In the above price chart of Tesla stock, an ascending triangle forms that lead to a continuation in the bullish price trend.

This is an example of the ascending triangle forming as a continuation pattern.

The initial bullish price trend pauses and the market consolidates and creates the ascending triangle pattern before the price moves higher after the breakout.

Example Of An Ascending Triangle Pattern As A Reversal Pattern

Ascending triangle price reversal example

In the above price chart of Affirm Holdings stock, an ascending triangle forms.

This is an ascending triangle that forms after a bearish price move and it signals a new bullish price move once the price of AFFRM breaks out of the ascending triangle.

Example Of An Ascending Triangle Pattern In The Stock Market

Ascending triangle in stock market example

In the above price chart of Apple stock, an ascending triangle formed.

There was a clear horizontal resistance level and a rising ascending support level.

When the price of AAPL breaks out, it leads to a large bullish price move.


Example Of An Ascending Triangle Pattern In The Cryptocurrency Market

Ascending triangle in cryptocurrency market

The above price chart of Bitcoin shows an ascending triangle that formed.

The Bitcoin market created a horizontal resistance level and a rising support level.

When the price breaks out of the resistance level, it results in a fast price increase in the market.

Ascending Triangle Pattern Timeframes

An ascending triangle can form on any timeframe from a 1-minute price chart up to a monthly or yearly price chart.

Typically, scalpers will trade ascending triangles on 1-minute price charts up to 30-minute timeframe price charts.

Day traders will trade the ascending triangle patterns on the 5-minute up to the 1-hour timeframe price charts.

Swing traders will trade the ascending triangle on the daily timeframe price charts.

Long-term traders will trade the ascending triangle on the daily and weekly timeframe price charts.

How To Find Ascending Triangle Patterns

The methods for finding ascending triangle chart patterns are:

  • Use ascending triangle pattern scanner: Use an ascending triangle scanner to automatically find these patterns in the market.
  • Manually browse price charts: Manually browse through the price charts and try to find these patterns forming.
  • Read chart pattern newsletters: Use chart pattern and technical analysis newsletters to have experts find the ascending triangle chart pattern for you.

These are the most common ways of finding ascending triangles in the market.

Beginner traders usually manually browse price charts to learn for themselves before switching to using a software tool to help find the patterns.

Ascending Triangle Pattern Benefits

The benefits of the ascending triangle chart pattern are:

  • It can be used as both a reversal pattern or a continuation pattern: The ascending triangle can be used as both a continuation price pattern and a reversal price pattern and is not restricted to just one type.
  • It offers a high reward to risk ratio: The risk to reward ratio on an ascending triangle can be high, typically risking $1 to make over $3.
  • It is easy to learn: New traders typically find it easy to learn the ascending triangle as there are only two lines required to draw it.
  • It can help find large bullish price moves: An ascending line can be the signal that a very large increase in price is imminent. This helps new traders find large bullish price moves.

Ascending Triangle Pattern Limitations

The limitations of the ascending triangle chart pattern are:

  • There can be many false breakouts: The price of a market can break out of the ascending triangle and fail many times before the real breakout occurs.
  • The pattern doesn't always breakout: The ascending triangle doesn't always result in a breakout from the resistance level. This can annoy newer traders.

Ascending Triangle Formation Duration

The length of time an ascending triangle takes to form will depend on the price chart timeframe used.

Below are some examples of how long it takes an ascending triangle to form based on different timeframe charts.

  • 1-minute price charts: On 1-minute price charts, it can take approximately 30 minutes to 1 hour for an ascending triangle to form.
  • Hourly price charts: On hourly price charts, it can take approximately 2 - 3 days for an ascending triangle to form.
  • Daily price charts: On daily price charts, it can take approximately 3 months to 6 months for an ascending triangle to form.
  • Weekly price charts: On weekly price charts, it can take approximately 6 months to 1 year for an ascending triangle to form.

These are the approximate duration examples for the ideal ascending triangle to form.

Frequently Asked Questions About The Ascending Triangle Patterns

Below are frequently asked questions about the ascending triangle chart pattern.

Is An Ascending Triangle Pattern A Bullish Or Bearish Signal?

An ascending triangle is a potentially bullish signal if the price of the market where the pattern forms breaks out of the ascending triangle resistance level.

Where Is The Buy Point Of An Ascending Triangle Pattern?

The buy point of an ascending triangle pattern is when the price of the market breaks out of the horizontal resistance level on an increase in volume.