Which direction do ascending triangles usually break?

    Quick Answer

    Ascending triangles break upward approximately 75% of the time, making them bullish continuation patterns.

    Detailed Explanation

    The ascending triangle pattern breaks to the upside about 75% of the time. This pattern features a flat horizontal resistance line and a rising support line (higher lows). The compression of price action between these lines typically resolves with an upward breakout. However, traders should always be prepared for the 25% of cases where breakdown occurs.

    Key Points

    • 175% upside breakout probability
    • 2Flat resistance, rising support
    • 3Volume decreases as pattern tightens
    • 4Breakout usually occurs 2/3 through pattern
    • 5Target = base height from breakout

    Example

    Resistance at $50, rising lows from $40 to $48. Base height = $10. Breakout target = $60.

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