Ascending Triangle Stock Chart Pattern

Blain Reinkensmeyer

Posted on Fri 30th Jan, 2009 11:00:48 AM

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Investors who engage in technical analysis with stock charts should be able to identify key stock chart patterns. Today we will be breaking down the ascending triangle.

The ascending triangle pattern is bullish when found in an uptrend. The top of the triangle is flat and made with the stock hitting resistance several times over. Accompanied by a upwards slanting bottom the stock creeps up towards resistance before breaking out and above (high volume desired on breakout).

Dan Zanger, world record holder for the largest portfolio return in one year breaks down the keys of this pattern on his site chartpattern.com:

1. In ascending triangles, the stock becomes overbought and prices are turned back.
2. Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back.
3. Buying then resurfaces, although at a higher level than before.
4. Prices eventually break through the old highs and are propelled even higher as new buying comes in.

Source:
Dan Zanger, chartpattern.com