Dan Zanger's Guide to Trading Ascending Triangles

The Ascending Triangle: A Bullish Signal

The ascending triangle is a bullish chart pattern that is formed by a horizontal resistance line and a rising trendline of support. It indicates that buyers are more aggressive than sellers, and that a breakout to the upside is likely. Dan Zanger is a big fan of the ascending triangle, as it provides a clear and defined entry point and stop-loss level.

Zanger's Trading Tactics

Zanger buys as the stock breaks out above the horizontal resistance line, on high volume. His stop-loss is placed just below the breakout point. He will often use a trailing stop to lock in profits as the stock moves higher. The ascending triangle is a reliable pattern, but like all patterns, it is not foolproof. That is why Zanger's disciplined approach to risk management is so important.