This chapter begins looking at chart patterns not bounded by twin horizontal lines. Triangles use a more complicated shape: diagonal trendlines. Training your eye to recognize them is still easy, though, because the technique builds on what we have learned.
Exhibit 8.1 shows an example of an ascending triangle, highlighted by red trendlines.
Price overshoots (A) the entry to this chart pattern, but who cares? There are no ascending triangle top and bottom variations to worry about (where the inbound price trend is important); there are only ascending triangles.
The stock breaks out upward at B, which happens the majority ...