The Ascending Triangle is one of my favorite patterns to trade. It is a bullish chart pattern that may form when a share holder begins selling off a large block of shares at a fixed price to the market. The pattern shows the case of strong overhead supply being met by rising demand for the stock. If the demand persists, the supply will eventually be absorbed leaving the price free to move in the upward direction. Ascending Triangles are easily recognized and when interpreded correctly, tend to be reliable patterns to trade.
Profit Target - can be measured by adding the height of the triangle to the horizontal resistance line.
Example - A daily chart showing an ascending triangle on TWTI with resistance around the 6.00 level.
Trading Tip - generally best traded as a continuation pattern that forms in a prevailing uptrend, with the supply line at a psychologically significant round number.