Hello friends and welcome to another informative podcast by Angel Broking. In the years before breathalyzers, when traffic police suspected that a driver was drunk or driving under the influence, they often hauled him out of his vehicle, chalked a straight line on the concrete and challenged the driver to walk along the said line in order to prove that he was sober. If the unlucky driver was unsuccessful in walking along the straight line, the police would apprehend him and send him for a blood test that would confirm or refute their suspicions. I bet you're wondering why I'm telling you a story about traffic police SOPs in the days gone by. Well, very simply because just like the policemen watch for a driver who cannot walk along the line, in using the ascending triangle pattern too, traders are trying to identify places where the stock wavers (or displays a breakout) from lines drawn on a stock graph. "What lines?" you ask. We're talking about the lines that emerge from a series of price highs and price lows. The stock price highs are consistent, allowing for a horizontal line to be drawn along them on the stock graph. Meanwhile, the stock price lows are progressively higher (or less and less low), allowing for a diagonal, ascending line to be drawn along them on the stock graph. The lines meet to form a triangle - an asymmetrical triangle that isn't closed exactly - but a triangle nonetheless. Traders are waiting and watching for a breakout or in other words - they are waiting for the stock price to move beyond identified support and resistance levels. Put simply, a breakout is defined by a price movement wherein the stock price rises beyond any recent high or slides below any recent low.