Ascending Triangle
A formation with a flat upper boundary and a rising lower boundary, so the range narrows upward toward a point.
How it is identified
Test: two or more highs at approximately the same level, with successively higher lows converging on them
Unit
qualitative
In depth
The shape describes buyers willing to pay progressively more while sellers remain at a fixed price, which is the narrative usually attached to it. Triangles are among the more objectively definable patterns, since both boundaries can be specified numerically, but the direction of the eventual resolution is not determined by the shape and studies find the supposed bias is weak. Volatility compresses as the apex approaches, which is the one uncontroversial observation — and compressed volatility tends to expand, without indicating which way. The narrowing structure gives a tight stop, which is its main practical use.
Worked example
Highs at ₹536, ₹535 and ₹537 with lows at ₹486, ₹502 and ₹518. The range has narrowed from ₹50 to ₹19, so a position taken near the apex risks far less per share than one taken at the start.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Ascending Triangle” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.