ThinkingAntsOk

The triangle pattern on TRV is finished | What's next?

NYSE:TRV   The Travelers Companies, Inc
Today, we will look at a beautiful chart from a technical perspective and all the relevant levels that we should pay attention to.

Key Elements on the chart:

a)The dynamic Resistance level working since 2018. That's our Major level in terms of defining the turning point for bullish movements. Once we have clarity about "major levels," we may see two types of behavior there. Either the level keeps working, and you observe a reversion. OR the price creates sideways structures below on the edge or above, and generally speaking, we tend to observe new impulses coming out of those structures.

b)The ABCDE triangle pattern: Corrective Structures are not more than a tool, and when used as isolated signals, it is a great formula to achieve nothing. However, when we add context to a corrective structure, we increase our odds of being in front of a situation where the price may start a new massive impulse or wave. In this case, the proportions with the previous impulse are perfect, and the inner formation of it is from a technical analysis book. So we can consider it finished.

Activation level and directions:

a) Targets: we are using fibo extensions to define the possible targets of this movement. Remember, we ALWAYS use 1.618 as taking profit and 1.272 as a level to be cautious and protect the full position or part of it.

b) Activation Level: the ONLY way to say "My Bullish view is active" is IF the price reaches our horizontal green line, which basically means a new ATH . IF that becomes true, my invalidation level will be below C; at that point, I would say, "I'm hesitant of the bullish hypothesis," therefore I'm out. However, if the price doesn't reach our activation level, there's nothing to do more than wait or cancel the idea if the price starts falling.


Thanks for reading! Share your view or charts on the comment.

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