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Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
I’m updating the idea by posting a new one because I need a new chart and don’t know how to add a screenshot to the previous main idea. If someone knows if it is possible and how, please let me know.
This trade is going very well, prices rose after the breakout and never looked back.
As we can see, a perfect Pennant could be forming close to the target so I wanted to alert you about the fact that prices could go beyond it.
While the upper side of the Pennant is well defined, the lower side has only one proper point at the moment (yellow circle) so we still cannot draw the support line (minimum two points). The closer prices get to the apex the better for the lower boundary line to be defined.
About the new possible target projection, we can mention three approaches. Purists/Conservatives Swing Traders most of the times tend to strictly project the target starting from the very last strong almost vertical move (orange arrows). Old School Position Traders tend to cancel the target (pending order) and start following prices only moving stop loss. Innovative/Modern Position Traders which are somewhere in between the two, tend to consider the last entire strong almost vertical move ignoring very small consolidations/pauses (black arrows).
Of course we need the Pennant breakout before considering any action.
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
════════════════════════════════
Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
I’m updating the idea by posting a new one because I need a new chart and don’t know how to add a screenshot to the previous main idea. If someone knows if it is possible and how, please let me know.
This trade is going very well, prices rose after the breakout and never looked back.
As we can see, a perfect Pennant could be forming close to the target so I wanted to alert you about the fact that prices could go beyond it.
While the upper side of the Pennant is well defined, the lower side has only one proper point at the moment (yellow circle) so we still cannot draw the support line (minimum two points). The closer prices get to the apex the better for the lower boundary line to be defined.
About the new possible target projection, we can mention three approaches. Purists/Conservatives Swing Traders most of the times tend to strictly project the target starting from the very last strong almost vertical move (orange arrows). Old School Position Traders tend to cancel the target (pending order) and start following prices only moving stop loss. Innovative/Modern Position Traders which are somewhere in between the two, tend to consider the last entire strong almost vertical move ignoring very small consolidations/pauses (black arrows).
Of course we need the Pennant breakout before considering any action.
🔎🔎🔎 ALWAYS REMEBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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