Ascending / Descending Triangle
An ascending triangle is a chart pattern characterized by a horizontal resistance line at a series of similar highs and a rising trendline connecting progressively higher lows, historically interpreted as a potential bullish continuation pattern; a descending triangle is the inverse, with a horizontal support line and declining highs, historically associated with bearish continuation.
Triangle patterns arise when price action becomes increasingly compressed between converging trend lines. In an ascending triangle, the upper boundary is a roughly horizontal line representing a price level where sellers have repeatedly emerged, while the lower boundary slopes upward as buyers step in at successively higher prices. The compression of price range toward the apex of the triangle reflects a narrowing balance between supply and demand, and technical analysts have historically associated the eventual resolution of this compression with an expansion of price movement — a breakout.
The ascending triangle is classified as a continuation pattern in most technical analysis literature when it forms within an existing uptrend, as the pattern of higher lows suggests accumulating buying conviction even as price remains temporarily capped at resistance. Breakouts to the upside through the horizontal resistance have historically been accompanied by increased volume in confirmed historical examples, though volume patterns vary and should not be relied upon as the sole confirmation criterion.
The descending triangle is the inverse construction: a horizontal support floor at which buyers have repeatedly emerged, and a declining upper boundary reflecting lower highs and diminishing upward momentum. It is typically classified as a bearish continuation pattern when it forms during a downtrend, with historical breakdowns through the horizontal support floor associated with further price declines.
Both patterns can also appear as reversal patterns — an ascending triangle after a prolonged downtrend, or a descending triangle after an uptrend — though continuation interpretations are more common in the literature. The measured move technique, applied by projecting the height of the triangle from the breakout point, is a rough price objective method used historically by technical analysts. As with all chart patterns, ascending and descending triangles are tools for organizing and describing historical price behavior and do not provide certainty about future outcomes.