An ascending triangle shares similarities with a symmetrical one, but the difference lies in one slanted side.

The ascending triangle is often characterized by a flat resistance level at the top and a bottom side that slopes upward as the price reaches higher lows. It may indicate weakening resistance with an upward breakout. These higher lows show that bulls have a stronger influence on the market and there are opportunities for buying. Below, you’ll find two methods for trading using ascending triangles.

Trading Using Ascending Triangle: Method One

The first method involves opening a position at the moment of breaking the resistance level and the beginning of a price increase.

You have the opportunity to place a stop-loss under the side of the pattern that points upward and determine the profit level by measuring the height of the backside of the ascending triangle and postponing this distance upward from the breakout of the trend line.

Trading Using Ascending Triangle: Method Two

The second method involves waiting for the price to break through the triangle’s resistance level, as in the first case. Then you need to place a buy order after the price retests the previous support level (the broken resistance turns into support).

The stop-loss is placed under the new resistance area, and the profit here remains the same as it was in the first method – the length of the backside of the triangle.