A symmetrical triangle appears on the chart which is known from explosive breakouts, continuation and that it can break either way.
Even this pattern is known from a trend continuation but it is also known from false breakouts which increases risks when trading it. should start diminishing the deeper it goes in to the apex and is essential tool to confirm the breakout as it should start expanding after the breakout.
The downtrend line and MA50 are acting as resistance levels for now and breakout through of them with increased is the first signal of a breakout. What confirms upward movement is that when the price breaks through and holds above of 0.236 fib level ($488).
In case this starts breaking down then the next attractive support is $445 which is near to 0.618 fib level and is the first location to watch for reversal.
The second attractive support can be found near to 0.786 fib.
The danger here is that symmetrical triangles often gets people stuck in to their position because of the chance for a false breakout.
Also noteworthy is that the price has been moving inside of a channel and has not been able to break through either way.
Symmetrical triangles are known from rapid breakouts and that’s why when trading it, it’s recommended to use tight stop-losses.
confirms the breakout and this trade should be monitored closely when trading it.
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Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.