Ascending & Descending Triangles
Overview
Ascending triangles form when price creates a horizontal resistance line at the top and a rising support trendline at the bottom, indicating buyers are becoming more aggressive. Descending triangles feature a horizontal support floor with a declining resistance trendline, suggesting sellers are gaining control. Both patterns are typically continuation patterns that resolve in the direction of the prevailing trend with a measured move target equal to the triangle's height.
Key Concepts
Ascending triangles have flat resistance and rising support, reflecting increasing buying pressure. Descending triangles have flat support and declining resistance, reflecting increasing selling pressure. Both require at least two touches on each boundary to be valid patterns. Volume typically contracts during formation and expands on the breakout. The measured move target equals the height of the triangle at its widest point, projected from the breakout. While classified as continuation patterns, both can occasionally act as reversal patterns when formed against the trend.
Entry Signals
Enter on a close above the flat resistance of an ascending triangle with volume surge. Enter on a close below the flat support of a descending triangle with volume confirmation. Wait for a retest of the broken boundary for a lower-risk entry. Confirm with momentum indicators aligning with the breakout direction.
Exit Signals
Target the measured move — the triangle height projected from the breakout point. Stop just inside the triangle below the last higher low (ascending) or above the last lower high (descending). Exit if the breakout fails and price returns inside the triangle with conviction. Trail stops using the rising support line for ascending triangles or declining resistance for descending.
Best Timeframes
1H, 4H, Daily
Pro Tips
Ascending triangles that form during an uptrend have the highest probability of breaking out to the upside, and descending triangles during a downtrend break down most reliably. Be cautious of false breakouts — require a candle close beyond the boundary rather than just a wick. Volume is the key validator: a breakout without volume expansion often fails.
More Topics in This Category
Rectangle Patterns
Rectangle patterns form when price trades sideways between two parallel horizontal lines — a clearly defined support and resistance. Rectangles represent a period of equilibrium where buyers and sellers are evenly matched. The pattern resolves when price breaks decisively through one of the boundaries, often continuing in the direction of the prior trend.
Pennants
Pennants are short-term continuation patterns that form after a strong directional move. They resemble small symmetrical triangles, with converging trendlines creating a compact consolidation zone. Unlike flags, which have parallel channels, pennants converge to a point. The breakout typically occurs in the same direction as the preceding move, with the measured target based on the flagpole.
Measured Move Projections
Measured move projections use the length of a prior price swing to forecast the target of the next swing in the same direction. The technique assumes market symmetry — that the second leg of a move will approximate the distance of the first leg. Measured moves apply to impulse waves, corrective patterns, and chart pattern breakouts, providing objective price targets that remove subjectivity from exit planning.
Bull & Bear Flags
Bull and bear flags are continuation patterns consisting of a sharp price move (the flagpole) followed by a brief, counter-trend consolidation channel (the flag). Bull flags slope downward after an upward pole; bear flags slope upward after a downward pole. These patterns represent a pause in strong momentum before the trend resumes, and they are among the most commonly traded continuation setups.