tradermillz
Long

An Ascending Triangle has been forming on LINK

COINBASE:LINKUSD   LINK/USD
Link has been relatively tame for it's normal self, and I think it's due for a good run-up potentially to ATH and ultimately into price discovery. But first things first. It's important to note, none of this is trading advice, and readers should consider this as an opinion. Previous results can't guarantee or dictate future results.

An ascending triangle has been forming on LINK since October.

What is an Ascending Triangle?


An Ascending Triangle is when the Swing highs can be drawn with a horizontal line coupled with a rising trend-line. This is usually a continuation pattern and is seen as bullish


And it appears it may have just broken out of it for the first time on the 4th attempt.


This would be a buy the breakout if you're not currently in LINK. I recommend looking for a re-test of the top of the horizontal line as volume was decent but not big enough to call it.


It's following the 9EMA & 21EMA on the daily, and has yet to lose the 21EMA in this run-up.


Other TA worth noting:

RSI has remained bullish since about Sept 26th, as it's stayed above 40RSI.

We had a W bottom, which is a bullish reversal.

Targets (The green lines):

T1 has been reached and exceeded - possible 15% in profits.

T2 is next for a possible 25% in profits.

T3 for a possible 56% in profits.

T4 for a possible 89% in profits.

T5? At some point here LINK will go into price discovery mode and break the ATH , not sure if it will be in this move or not.
Nov 13
Comment: At the moment we're trying to recover the 9EMA on the hourly, but still holding above the 21EMA.

I did expect some kind of retest of the horizontal trend-line, however we may not get it.

I would be happy with a test of the 21EMA on the 2 hourly. Before heading up towards target 2.

Keep an eye on what happens if we break below the 21EMA. That would be at $2.88, there are currently a decent amount of orders on the books at this price range, and it looks logical for support.


Final thoughts:

The declining volume is a bit concerning, and will monitor to see if we get a increase in volume on selling, with decrease in volume on the buy back.

I'm locking in another 25% of entry, and leaving 50% on the table to see what happens if we retest 21EMA.

Remember it's always important to take profits, never turn a winning trade into a losing one.
Nov 13
Comment: Here is the 2hr chart I meant to post showing 9EMA support, and 21 EMA in line with our green support box where I would like to see a retest, but with LINK you never know.

Nov 14
Comment: Link has broken its Ascending Triangle convincingly, and T2 looks to be in sight.

We're still holding 21 EMA and 9EMA hourly.

As well an Ascending Channel is forming.

Overall selling pressure is weaker than buying pressure.

Things to note:

BTC can ruin the set-up so Stop Losses are important to use.

If our channel is invalidated the set up can be invalidated as a whole, and we may have a local top for the time being, and or this was a fake-out.

And Stop Losses should be relative to risk/reward and portfolio allocations.

Losing the 21 EMA is cause for invalidation of the trade set-up.

Nov 14
Comment: Here's my first post on the Ascending Triangle, which I had been following well before this was recorded.

Nov 14
Comment: Bullish close on Daily for LINK.

On track for T2, I added more LINK on the small pullback.

However for now our Ascending Channel was invalidated, it could easily re-enter the channel, and it would still classify as one, it's just not going to be as clean as originally designed and holds less meaning.
Nov 17
Trade closed manually: I have decided to close the remainder of my position, LINK not looking as strong as before.

BTC looking bearish.

Will look for new entry.

Comments

Given the massive bounce on LINK after breaking testing the top the of AscendingTriangle/red box this is very bullish.

This is the re-test of the top of the ascendingtriangle I was looking for.

I didn't expect it to go so deep and I didn't place orders in as low as I would have liked.

But that's why its best to always stick to your trade thesis until it's invalidated.

I'm still happy with the potential outcome of this trade.

T2 is still in sight, taking a bit longer then expected, but patience is key here, this trade could easily blow the top off and go into price discovery mode.

I'm interested to see how Bitcoin volatility will effect LINK here. Keep a close eye on Bitcoin, it seems we have a lot of buyers and LINK will bounce most btc dips.

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