Ascending Triangle Definition and Tactics

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* The trendlines of a triangle need to run along at least two swing highs and two swing lows.

* Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy.

* A long trade is taken if the price breaks above the top of the pattern.

* A short trade is taken if the price breaks below the lower trendline.

* A stop loss is typically placed just outside the pattern on the opposite side from the breakout.

* A profit target is calculated by taking the height of the triangle, at its thickest point, and adding or subtracting that to/from the breakout point.

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