According to Tom Bulkowski - the king of patterns:
Ascending Triangle: Important Bull Market Results
Price Trend - Can be any direction leading to the chart pattern.
Shape - Triangular. Prices move between two converging trendlines.
Trendlines - Two trendlines bound prices; the top trendline is horizontal and the bottom one slopes upward.
Crossing - Price must cross the pattern from side to side, filling the triangle with price movement, not white space.
Confirmation Touches - Price must touch one trendline at least three times, the other at least twice, forming distinct valleys and peaks.
Volume - Trends downward at least 78% of the time.
Measure Rule of Breakout Tactic: Compute the height from the price of the horizontal trendline (Top trendline) to the lowest valley in the pattern (bottom trendline) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. - The price target after completion of this formula is $2,200 - however we see confluence with pivot points and fibs at $2k.
Rise: Patterns with a intermediate-term rise (between 3 and 6 months) leading to the triangle show price rising an average of 49% after an upward breakout.
Ascending Triangle: Important Bull Market Results
- Overall performance rank for up/down breakouts (1 is best): 16 out of 39/30 out of 36
- Break even failure rate for up/down breakouts: 17%/38%
- Average rise/decline: 43%/13%
- Throwback/pullback rate: 64%/63%
- Percentage meeting price target for up/down breakouts: 70%/44%
Price Trend - Can be any direction leading to the chart pattern.
Shape - Triangular. Prices move between two converging trendlines.
Trendlines - Two trendlines bound prices; the top trendline is horizontal and the bottom one slopes upward.
Crossing - Price must cross the pattern from side to side, filling the triangle with price movement, not white space.
Confirmation Touches - Price must touch one trendline at least three times, the other at least twice, forming distinct valleys and peaks.
Volume - Trends downward at least 78% of the time.
Measure Rule of Breakout Tactic: Compute the height from the price of the horizontal trendline (Top trendline) to the lowest valley in the pattern (bottom trendline) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. - The price target after completion of this formula is $2,200 - however we see confluence with pivot points and fibs at $2k.
Rise: Patterns with a intermediate-term rise (between 3 and 6 months) leading to the triangle show price rising an average of 49% after an upward breakout.