Important Points to look at -
The 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.
Increasing helps to confirm the breakout, as it shows rising interest as the price moves out of the pattern.
A minimum of two swing highs and two swing lows are required to form the ascending triangle's . But, a greater number of trendline touches tends to produce more reliable trading results. Since the are converging on one another, if the price continues to move within a triangle for multiple swings the price action becomes more coiled, likely leading to a stronger eventual breakout.
A triangle is a type of consolidation, and therefore tends to contract during an . As mentioned, traders look for to increase on a breakout, as this helps confirm the price is likely to keep heading in the breakout direction. If the price breaks out on low , that is a warning sign that the breakout lacks strength. This could mean the price will move back into the pattern. This is called a false breakout.
$ = Liquidity