An earlier analysis by someone else saw this as a triple top but it has evolved into a flagpole pattern
The market sees the pattern as bullish because it has higher lows
I dont know how many times it will bounce around in the flag section. It will often keep on tightening up until it runs out of space in the triangle and then breaks out
Stock pattern theory will tell you that a breakout from this pattern can often go up to a similar height of the initial flagpole. However I dont put a lot of faith in that theory, Instead, I mainly use this pattern to identify a potential breakout rather than using it to tell me how high it will go.
There are a few ways to trade this pattern.
1) Wait for the breakout then buy in
2) If you are confident in the coin you can take a larger risk and buy when it is near the bottom of the triangle.
3) Make some short term money by trading the swings within the triangle. I will often do this while using the symbol depth chart or order book to see how much support and resistence there is near the triangle edges
There always has to be a downside. If the pattern breaks down, it can drop hard often to the bottom of the lowest point of the triangle. If that happens, the pattern will often morph into a different pattern so I will reevaluate at that time
Trade safely. Dont put all your eggs in one basket
For more info on this pattern see ...
www.investopedia.com.../terms/p/pennant.asp
The market sees the pattern as bullish because it has higher lows
I dont know how many times it will bounce around in the flag section. It will often keep on tightening up until it runs out of space in the triangle and then breaks out
Stock pattern theory will tell you that a breakout from this pattern can often go up to a similar height of the initial flagpole. However I dont put a lot of faith in that theory, Instead, I mainly use this pattern to identify a potential breakout rather than using it to tell me how high it will go.
There are a few ways to trade this pattern.
1) Wait for the breakout then buy in
2) If you are confident in the coin you can take a larger risk and buy when it is near the bottom of the triangle.
3) Make some short term money by trading the swings within the triangle. I will often do this while using the symbol depth chart or order book to see how much support and resistence there is near the triangle edges
There always has to be a downside. If the pattern breaks down, it can drop hard often to the bottom of the lowest point of the triangle. If that happens, the pattern will often morph into a different pattern so I will reevaluate at that time
Trade safely. Dont put all your eggs in one basket
For more info on this pattern see ...
www.investopedia.com.../terms/p/pennant.asp
Trade active:
I am closing this idea as the pattern has mostly played out
From here, a pump is still possible or another that I can see is for the bottom line of the triangle to continue as support, resulting in a steady move upwards in the price
From here, a pump is still possible or another that I can see is for the bottom line of the triangle to continue as support, resulting in a steady move upwards in the price