Ascending triangle

What it looks like

• A flat ceiling that sellers defend at the same price.
• Pullbacks that bottom higher each time, forming a rising floor.
• A range that narrows towards the right.
• A candle close above the ceiling completes it.

Measuring the rise

Measure the triangle's height at its widest point and add it to the breakout level: a triangle from $40 to $50 projects about $60. A stop below the last higher low is the usual invalidation point.

Count the touches on the ceiling: each test absorbs some of the sell orders resting there, which is why a third or fourth test breaks more often than the first.

Breakouts that fail

A poke above resistance that closes back inside is a warning; the pattern can then fail down through the rising line. The later in the triangle the break comes — close to the apex — the weaker it tends to be.

On BRVX

The same triangle on a BRVX stock chart can differ from an exchange chart because BRVX stock prices move on weekends, adding candles where exchanges show gaps. Draw the lines on the chart you trade on.