An Ascending Triangle is a bullish chart pattern used by technical analysts to generate breakout signals. Ascending Triangles are plotted by drawing a diagonal, upward sloping trendline that connects a series of higher lows in an asset’s price.
This diagonal trendline is connected to a horizontal line that marks a resistance level that the price has failed to break above. If the price breaks above this horizontal trendline it’s regarded as a buy signal. This will often have the effect of accelerating the move up, as all traders using this same chart pattern are waiting for the same confirmation.
However, ascending triangles can also break bearish. This happens when the price action breaks below the diagonal trendline and continues to trade below it.