Ascending Triangle Pattern: What Is It & How to Use It For Crypto Trading

The ascending triangle, also known as the rising triangle, is a continuation pattern that occurs within a trend. It is a continuation pattern as it typically triggers a breakout from the trend.

In this article, we’ll review what an ascending triangle pattern is, what it looks like and how to trade the pattern, along with the advantages and limitations of using this chart pattern.

Introduction to Triangle Patterns

In technical analysis, there are three types of triangle patterns – symmetrical triangle, descending triangle and ascending triangle. These patterns can be used to establish trade setups for trading breakouts. Each is a consolidation pattern that is looked for within a trend.

The symmetrical triangle is a neutral chart formation although it is generally looked at as a trend continuation pattern. An ascending triangle is bullish and is primarily watched for in uptrends, while a descending triangle is a bearish trend continuation pattern. As with any price pattern, traders also anticipate an opportunity in pattern failures. In other words, sometimes the failure of a consolidation breakout can also lead to trading opportunities for more aggressive traders.