An ascending triangle has a flat resistance line at the top and a rising trendline of higher lows underneath — buyers are progressively more willing to pay up on each retest of resistance, and the pattern usually resolves with a bullish breakout above that flat line. A descending triangle is the mirror image: a flat support line at the bottom with a falling trendline of lower highs above it, usually resolving with a bearish breakdown below support.
Why it matters
- —The pattern is only complete on the actual breakout — trading the anticipation of a breakout before it happens is common but considerably riskier.
- —The repeated tests of the flat line (resistance in an ascending triangle, support in a descending one) build up pressure that's often released decisively once the line finally gives way.
- —Volume typically contracts as the triangle narrows and should expand sharply on the eventual breakout — confirming genuine conviction behind the move.
How to read it
| Ascending triangle breaks resistance | Bullish continuation/breakout |
| Descending triangle breaks support | Bearish continuation/breakdown |
| Price still inside the triangle | Pattern incomplete — wait for the breakout |