Ascending Triangle
An ascending triangle is a chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second trend line that draws a series of higher lows. The pattern is considered a continuation pattern, meaning that it is typically seen during an uptrend and signals that the trend will continue. The pattern is formed when the price of a security moves within a narrowing range, creating a triangle shape on the chart. The triangle is formed by two trend lines that converge as the price of the security moves higher.
History of the Term
The term “ascending triangle” was first used by Richard Schabacker in his 1932 book, Technical Analysis and Stock Market Profits. Schabacker was one of the first to recognize the importance of chart patterns in predicting future price movements. He identified the ascending triangle as a continuation pattern that could be used to identify potential breakouts. Since then, the pattern has become a popular tool for technical analysts.
Comparison Table
| Pattern | Uptrend | Downtrend |
|---|---|---|
| Ascending Triangle | Continuation | Reversal |
| Descending Triangle | Reversal | Continuation |
Summary
An ascending triangle is a chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second trend line that draws a series of higher lows. The pattern is considered a continuation pattern, meaning that it is typically seen during an uptrend and signals that the trend will continue. For more information about this term, you can visit Investopedia, TradingView, and StockCharts.
See Also
- Descending Triangle
- Symmetrical Triangle
- Flag Pattern
- Pennant Pattern
- Double Top
- Double Bottom
- Head and Shoulders
- Rising Wedge
- Falling Wedge
- Cup and Handle
