The ascending triangle is a mediocre performer despite its reputation as a reliable chart pattern.
Price trend can be any direction leading to the chart pattern. Shape looks more triangular. Prices move between two converging trendlines.
In an ascending triangle, the resistance line runs parallel while the support line is rising. To avoid false breakouts, we again recommend waiting for three peaks (or three valleys, respectively). And again, the price to pay for more safety in trading is sometimes missing a trade. We get a signal when the closing price is either above the resistance line or below the support line. Price must touch each trendline at least twice, forming distinct valleys and peaks. Volume trends downward 77% of the time(not shown).
Breakout upward 70% of the time and 61% of the way to the triangle apex (upward breakouts). ALWAYS BUY THE BREAKOUT.
VERDICT:
BUY:$114.63
SELL:$117.70 up to $121.36
STOP LOSS: $111.07
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.
Price trend can be any direction leading to the chart pattern. Shape looks more triangular. Prices move between two converging trendlines.
In an ascending triangle, the resistance line runs parallel while the support line is rising. To avoid false breakouts, we again recommend waiting for three peaks (or three valleys, respectively). And again, the price to pay for more safety in trading is sometimes missing a trade. We get a signal when the closing price is either above the resistance line or below the support line. Price must touch each trendline at least twice, forming distinct valleys and peaks. Volume trends downward 77% of the time(not shown).
Breakout upward 70% of the time and 61% of the way to the triangle apex (upward breakouts). ALWAYS BUY THE BREAKOUT.
VERDICT:
BUY:$114.63
SELL:$117.70 up to $121.36
STOP LOSS: $111.07
Remember TECHNICAL ANALYSIS is all about probabilities and based on previous market performance(not all about certainty)
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.