The ascending triangle pattern is bullish when found in an uptrend. The top of the triangle is flat and made with the stock hitting resistance several times over. Accompanied by a upwards slanting bottom the stock creeps up towards resistance before breaking out and above (high volume desired on breakout).
- In ascending triangles, the stock becomes overbought and prices are turned back.
- Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back.
- Buying then resurfaces, although at a higher level than before.
- Prices eventually break through the old highs and are propelled even higher as new buying comes in.
Dan Zanger, chartpattern.com