As of 08/19/2019
  Indus: 26,136 +249.78 +1.0%  
  Trans: 10,081 +114.06 +1.1%  
  Utils: 836 +5.18 +0.6%  
  Nasdaq: 8,003 +106.82 +1.4%  
  S&P 500: 2,924 +34.97 +1.2%  
YTD
 +12.0%  
 +9.9%  
 +17.3%  
 +20.6%  
 +16.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/19/2019
  Indus: 26,136 +249.78 +1.0%  
  Trans: 10,081 +114.06 +1.1%  
  Utils: 836 +5.18 +0.6%  
  Nasdaq: 8,003 +106.82 +1.4%  
  S&P 500: 2,924 +34.97 +1.2%  
YTD
 +12.0%  
 +9.9%  
 +17.3%  
 +20.6%  
 +16.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Ascending Triangles

 

Statistics updated 4/17/2019.

In my book Encyclopedia of Chart PatternsEncyclopedia of Chart Patterns 2nd Edition book., you can read the complete treatment of ascending triangles, including identification guidelines, focus on failures, statistics, trading tactics, and a sample trade.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

 

Shown is an ascending triangle chart pattern

Ascending Triangle

Ascending Triangle: Overview

The ascending triangle is a mediocre performer despite its reputation as a reliable chart pattern.

Click ascending triangle to read about the Elliott wave version.

Ascending Triangle: Important Bull Market Results

Overall performance rank for up/down breakouts (1 is best): 40 out of 56/45 out of 53
Break even failure rate for up/down breakouts: 17%; 38%
Average rise/decline: 43%; 13%
Throwback/pullback rate: 64%; 63%
Percentage meeting price target for up/down breakouts: 70%; 44%

The above numbers are based on 899/531 (up/down breakouts) of perfect trades. See the glossary for definitions.

Ascending Triangle: Identification Guidelines

CharacteristicDiscussion
Price trendCan be any direction leading to the chart pattern.
ShapeTriangular. Prices move between two converging trendlines.
TrendlinesTwo trendlines bound prices; the top trendline is horizontal and the bottom one slopes upward.
CrossingPrice must cross the pattern from side to side, filling the triangle with price movement, not white space.
TouchesPrice must touch one trendline at least three times, the other at least twice, forming distinct valleys and peaks.
VolumeTrends downward 80% of the time.
BreakoutUpward 63% of the time and 62% of the way to the triangle apex (upward breakouts) and 63% of the way for downward breakouts.

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Ascending Triangle: Trading Tips

Consult the figure on the right.

Trading TacticExplanation Ascending triangle measure rule
The Measure Rule
Measure ruleCompute the height from the price of the horizontal trendline (B) to the lowest valley in the pattern (A) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. The associated link provides more information.
StopPlace a stop loss order on the side opposite the breakout unless that would be too far away. Click the link on the left for stop placement information. For example, if the breakout is upward, a stop at any of the minor lows on side A would work well. For downward breakouts, use the price of B as the stop price.
RisePatterns with a intermediate-term rise (between 3 and 6 months) leading to the triangle show price rising an average of 49% after an upward breakout, but samples are only 175.
Score your chart pattern for
performance by clicking here
Throwback and PullbacksThrowbacks and pullbacks hurt post breakout performance. The links on the left define terms. For performance information on throwbacks and pullbacks, click the associated link.

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Expect the market to turn when it reaches the apex of the triangle. See Triangle Apex and Turning Points.

 

Ascending triangle chart pattern example

Ascending Triangle: Example

The figure shows an example of an ascending triangle. Price bounces between two converging trendlines, the top one is horizontal and the bottom one slopes upward.

To calculate a price target, subtract the price of the lowest valley in the chart pattern (A) from the price of the top trendline (B). That gives the height. Multiply the height by the 'percentage meeting price target' from the Important Bull Market Results table near the top of this page, and add it to the price of the top trendline B. In this example, point C makes for a good stop location.

For downward breakouts, compute the height in the same manner only subtract the height from C.

-- Thomas Bulkowski

 

 

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Other Ascending Triangle Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:      New                  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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