The Ascending Triangle pattern is a well-known bullish continuation pattern that signals a potential upward breakout. It is characterized by a flat resistance line at the top and a rising support trendline at the bottom , forming a triangle shape. As the price keeps making higher lows while repeatedly testing the resistance level, it indicates growing buying pressure.

This pattern forms when buyers gradually push the price higher, but sellers create resistance at a fixed level. Over time, the tightening price action signals an imminent breakout. The breakout confirmation happens when the price breaks above the resistance level with strong volume , indicating further upside movement.

How Traders Use It:

The ideal entry point is when the price breaks above the resistance line.
A stop-loss is placed below the last higher low to avoid false breakouts.
The target price is estimated by measuring the height of the triangle and projecting it upwards from the breakout point.

This pattern is commonly seen in trending markets and is often used to identify strong upward momentum.