Stellar - Pennant Pattern - 0.00003245 - 3845
Updated
Hey traders! I want to share with you my Stellar´s analysis. It called my attention because in last few days it increased a lot its marketcap, breaking with a lot of force (I mean Volume) the top of its last channel, and finally, forming a pennant pattern (If you want to know more about this kind of pattern, please go to the end of this post). I also want you to notice how volume has been decreasing during the pattern formation, which exactly the way how volume confirms this pattern existance.
If you want to enter to this market, I recommend you two things: First, wait for MACD´s inflextion point, which means the point where MACD change its direction (from down to up, I will try to update this post when that occurs anyway), and second, wait for a price bounce of the new possible tendency line (the white one). This bounce -and brekaout- must be accompained by a big volume increment. Those are exactly the criterions we have to keep in mind to confirm this pattern. If bounce doesn´t occurs, this analysis will not still being valid and we will have to wait for more market info.
MY ORDERS
BUYSTOP: 0.00002650
TakeProfit 1: 0.00003245
TakeProfit 2: 0.00003845
Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :)
Pennant Pattern - How does it works?
Well, in first place you have to know this kind of pattern is a continuation pattern. It always has to be preceded by a big price movement (which is exactly what we can observe in Stellar's chart), and it is created like a little pause in the bullish -or bearish- movement (as you can see this a bullish pennant). Once it is broken, we can expect another big movement equal to the pole´s height. You have to know Volume is also an important indicator to confirm this pattern. When a pennant pattern formation is taking place, volume has to start decreasing, which is exactly what we can see. On the contrary, when the breakout occurs, Volume has to increase a lot.
Are you interested in Technical Analysis?
I recommend you the John Murphy´s book: Technical Analysis of Financial Markets. It is a great introductory book.
Do you want me to analyze an specific coin?
I'm all ears, please contact me :)
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)
If you want to enter to this market, I recommend you two things: First, wait for MACD´s inflextion point, which means the point where MACD change its direction (from down to up, I will try to update this post when that occurs anyway), and second, wait for a price bounce of the new possible tendency line (the white one). This bounce -and brekaout- must be accompained by a big volume increment. Those are exactly the criterions we have to keep in mind to confirm this pattern. If bounce doesn´t occurs, this analysis will not still being valid and we will have to wait for more market info.
MY ORDERS
BUYSTOP: 0.00002650
TakeProfit 1: 0.00003245
TakeProfit 2: 0.00003845
Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :)
Pennant Pattern - How does it works?
Well, in first place you have to know this kind of pattern is a continuation pattern. It always has to be preceded by a big price movement (which is exactly what we can observe in Stellar's chart), and it is created like a little pause in the bullish -or bearish- movement (as you can see this a bullish pennant). Once it is broken, we can expect another big movement equal to the pole´s height. You have to know Volume is also an important indicator to confirm this pattern. When a pennant pattern formation is taking place, volume has to start decreasing, which is exactly what we can see. On the contrary, when the breakout occurs, Volume has to increase a lot.
Are you interested in Technical Analysis?
I recommend you the John Murphy´s book: Technical Analysis of Financial Markets. It is a great introductory book.
Do you want me to analyze an specific coin?
I'm all ears, please contact me :)
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)
Note
Pennan´t breakout!Note
Hey guys! If you are interested in Monero´s market, here´s my new analysis if you want to visit it. Thanks for all your support :) 
Note
Target 1 reached :)Note
Target 2 reached :)Note
Price is testing top of the channel. There might be a correction in next few hours, MACD indicator is showing change of direction signals. Waiting for more info :)
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