WallStArtist

Bullish Signal Confirmation on $YHOO

Long
BATS:YHOO   None
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An Ascending Continuation Triangle shows two converging trendlines . The lower trendline is rising and the upper trendline is horizontal. This pattern occurs because the lows are moving increasingly higher but the highs are maintaining a constant price level. The pattern will have two highs and two lows, all touching the trendlines . This pattern is confirmed when the price breaks out of the triangle formation to close above the upper trendline.

This pattern with its increasingly higher lows and constant highs indicates that buyers are more aggressive than sellers. The pattern forms because a supply of shares is available at a fixed price. When the supply depletes, the shares quickly break out from the top trendline and move higher.

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