Ascending triangle breakout
A flat top with rising lows shows buyers pressing against a fixed supply. When the supply is absorbed, price breaks out.
Try Ascending triangle breakout on a real day
A real market day with the date hidden. Run the checklist on the chart, then buy, sell or stay out: the real candles answer.
Check every point of the list before you decide. Stay out if the setup is not there.
The ascending triangle is a classic chart pattern described by Edwards and Magee and measured statistically by Thomas Bulkowski. It forms when sellers defend one price while buyers step in at higher and higher levels.
Why it works
Each higher low means buyers are more impatient. Each test of the flat top removes some of the sellers waiting there. Eventually the supply runs out.
The pattern gives a precise trigger (the flat top), a logical stop (below the last higher low) and a measured target.
The rules
Setup
- At least two touches of a horizontal resistance.
- At least two higher lows forming a rising trendline.
Entry
- Buy on a close above resistance, or on the first retest of the broken resistance from above.
Stop loss
- Below the last higher low inside the triangle.
Exit and management
- Target: the height of the triangle at its widest part, added to the breakout point.
Filters that improve it
- A breakout in the last third of the triangle is preferred.
- Higher volume on the breakout adds confidence.
Worked example
Illustrative GBP/USD example on 4H: resistance at 1.2800 tested three times; lows at 1.2700, 1.2740 and 1.2765. A close at 1.2815 triggers the buy, stop at 1.2760, target 1.2900 (the 100-pip height).
Illustrative numbers, not a recommendation.
Common mistakes
- Buying a wick above resistance that closes back below.
- Drawing the pattern with only one touch on each side.
How to practise it
In Candlemind draw the horizontal line and the rising trendline before price reaches the apex. Decide in advance whether you will buy the close or the retest.
Pre-trade checklist
- Two or more touches of flat resistance
- Two or more higher lows
- Close above resistance
- Stop below the last higher low
- Target = triangle height
Frequently asked questions
Is an ascending triangle bullish?
It is usually treated as a bullish continuation pattern, but it can break down; always use a stop.
Should I wait for a retest?
Waiting for the retest gives a better price and confirmation but misses breakouts that never return.