ASCENDING TRIANGLES consolidate a trend, but not necessarily an uptrend or a downtrend. And the pattern’s resolution may be to resume the prevailing trend, or to reverse it. Regardless, the pattern holds a retest of its initial high, while interim lows are increasingly higher.
An ASCENDING TRIANGLE that forms within the context of a downtrend is much more likely to resolve in new lows. An ASCENDING TRIANGLE that forms within the context of a downtrend will be vulnerable to a false break where a breakout would normally appear, but this risk diminishes greatly the longer that a failure is avoided.
Volume decreases throughout the ASCENDING TRIANGLE’s formation, and its pace increases sharply upon breaking out. The breakout is identified by a break above the highs, or under the pattern’s uptrending support.