BLOK - 90 days RECTANGLE
═════════════════════════════════
Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
In my opinion this Rectangle deserve respect in itself whether or not you label the previous top as a Double Top. Prices have consolidated well below the 200 days EMA and are now attempting a breakout.
The main concern here is how to choose the target. It's easy to see the Rectangle as a pause after a quite vertical decline from the last top at the all-time high. Proportions also are quite good to me. This means that we could also look at it as a Flag and therefore be tempted to project the target from the last strong pivot point before the drop (option 1) or a minor one (option 2).
Over time I've learnt that being conservative is always much better than be too optimistic when setting up a trade. So, a 90 days pattern, it's enough for me to be traded in itself without regretting it. That's why you see the target just as the classic projection of the Rectangle height.
This doesn't mean that taking a different approach would be wrong.
If prices go towards the target, keep in mind that we will have to deal with two quite strong levels at 26.00 and 23.40.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
════════════════════════════════
Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
In my opinion this Rectangle deserve respect in itself whether or not you label the previous top as a Double Top. Prices have consolidated well below the 200 days EMA and are now attempting a breakout.
The main concern here is how to choose the target. It's easy to see the Rectangle as a pause after a quite vertical decline from the last top at the all-time high. Proportions also are quite good to me. This means that we could also look at it as a Flag and therefore be tempted to project the target from the last strong pivot point before the drop (option 1) or a minor one (option 2).
Over time I've learnt that being conservative is always much better than be too optimistic when setting up a trade. So, a 90 days pattern, it's enough for me to be traded in itself without regretting it. That's why you see the target just as the classic projection of the Rectangle height.
This doesn't mean that taking a different approach would be wrong.
If prices go towards the target, keep in mind that we will have to deal with two quite strong levels at 26.00 and 23.40.
- Pattern Class: 🌕🌕🌕🌕🌕
- Target area: 23.00
- Breakout area below: 28.00
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
════════════════════════════════