What does Ascending Triangle mean?
An ascending triangle is a technical analysis term used to describe a chart pattern where a right triangle is created on a price chart by two trend lines. It is a bullish pattern and often forms as a continuation pattern in an uptrend.
An ascending triangle is created by the resistance line drawn at the top of a price series, where price has been unable to break higher, and a series of increasing troughs, or higher lows.
It shows a consolidation of price, with the underlying assumption that buying pressure is building as price contracts into a tighter and tighter range.
The signal to enter a long position is given when price breaks above the horizontal resistance line.