Triangle pattern with target in Resistance
Looking at a pattern that forms in trednphases, Triangle (sometimes in form of channels, wedges or flags)
These triangles tend to breakout into the direction of the underlying trend (here long) for more or less the same distance than the initial impulse move. In my understanding the psychology is somewhat like the ABCD pattern. So here we chase the D point. Looking at a 100% projection of A to B we see that this harmonic move ends in a Swing High resistance wich acts like a magnet to price action.
Personally, I am not waiting anymore for the price to breakout of such triangle becasue most potential profit will be gone so I postioned now.
Once the Target is hit, we will change side and be sellers going for a retracement bounce out of resistance.
These triangles tend to breakout into the direction of the underlying trend (here long) for more or less the same distance than the initial impulse move. In my understanding the psychology is somewhat like the ABCD pattern. So here we chase the D point. Looking at a 100% projection of A to B we see that this harmonic move ends in a Swing High resistance wich acts like a magnet to price action.
Personally, I am not waiting anymore for the price to breakout of such triangle becasue most potential profit will be gone so I postioned now.
Once the Target is hit, we will change side and be sellers going for a retracement bounce out of resistance.