Both ascending triangles and rectangle formations rely on the same price mechanics. Parallel price channel resistance often breaks on the 3rd high as momentum triggers bar expansion. Sometimes relative highs will print at an equal distance to each other, rather than in a proportional cup and handle. This powerful setup offers swing traders valuable insight and profitable tactics for all of these breakout incarnations. The handle location provides important accumulation feedback.
Volume tends to lead or lag price, especially at new highs and lows.
When the handle forms below the cup, it suggests that accumulation needs to build further before a breakout can proceed. Alternatively, congestion right above two old highs denotes a very strong market that should trend sharply once it completes the new platform. Also keep an eye out for a double handle formation. This odd pattern forms a base on both sides of the two old highs. Add that length to the bottom of the second handle to estimate a price target for the next rally.