Possible Cup & Handle forming on BTCUSD chart within 2 Triangles
At the moment I've noticed two Triangle Patterns that have been forming over days;
A Descending Triangle (Typically a bearish pattern with a bearish bias of breaking to the downside. - Take this with a grain of salt on crypto charts and especially during bull markets!)
A Symmetrical Triangle (Could break to either the upside or the downside. If you want to trade it, then place a BUY/LONG or SELL/SHORT order just below the neckline past the breakout point.)
Ideally for the triangle breakout(s) to be confirmed, you want to see a volume spike occurring, just before and during the initial breakout. The reason I suggest leaving room for your order just below the neckline, past the breakout point, is because of the possibility of a fakeout happening, before the price finally reversing direction and then breaking out.
You want the price to
1, Breakout of the triangle pattern.
2, Backtest the previous resistance now turned to support (The line the triangle brokeout from, should be retested after breaking out, but should hold as support instead of allowing the price to retreat back inside the triangle. That is then a confirmed breakout pattern!)
3, Previous Resistance now flipped to Support, should hold the price and the momentum of Longs aswell as the volume should be increasing and so you should see the price begin to rise at increasing rates and your order should have been filled.
4, Remember to set sensible Take Profits along the way and whenever trading with large amounts of capital, always use proper risk management and stop losses for when you are not monitoring your trades!
The Cup and Handle pattern is also forming, inside of the Descending & Symmetrical Triangles. I've drawn its path and shape on the chart for better visual representation, along with my general belief of the direction price will be heading in.
To trade the cup and handle pattern you want to open a trade up at the handle section of the C&H. As always leave room between your orders exact entry point and the technical entry point so to give yourself room to avoid fakeouts!
The C&H pattern imo is not as easy to trade as the two Triangles above. I however, can suggest monitoring the chart for the triangle breakout which would also coincide with the C&H breakout as shown on the chart. There is the most confluences there to suggest that's out next direction from where we're at now.
Stay safe and happy trading everyone!
And remember - Don't use high leverage without the understanding of your risks of getting wrecked!
A Descending Triangle (Typically a bearish pattern with a bearish bias of breaking to the downside. - Take this with a grain of salt on crypto charts and especially during bull markets!)
A Symmetrical Triangle (Could break to either the upside or the downside. If you want to trade it, then place a BUY/LONG or SELL/SHORT order just below the neckline past the breakout point.)
Ideally for the triangle breakout(s) to be confirmed, you want to see a volume spike occurring, just before and during the initial breakout. The reason I suggest leaving room for your order just below the neckline, past the breakout point, is because of the possibility of a fakeout happening, before the price finally reversing direction and then breaking out.
You want the price to
1, Breakout of the triangle pattern.
2, Backtest the previous resistance now turned to support (The line the triangle brokeout from, should be retested after breaking out, but should hold as support instead of allowing the price to retreat back inside the triangle. That is then a confirmed breakout pattern!)
3, Previous Resistance now flipped to Support, should hold the price and the momentum of Longs aswell as the volume should be increasing and so you should see the price begin to rise at increasing rates and your order should have been filled.
4, Remember to set sensible Take Profits along the way and whenever trading with large amounts of capital, always use proper risk management and stop losses for when you are not monitoring your trades!
The Cup and Handle pattern is also forming, inside of the Descending & Symmetrical Triangles. I've drawn its path and shape on the chart for better visual representation, along with my general belief of the direction price will be heading in.
To trade the cup and handle pattern you want to open a trade up at the handle section of the C&H. As always leave room between your orders exact entry point and the technical entry point so to give yourself room to avoid fakeouts!
The C&H pattern imo is not as easy to trade as the two Triangles above. I however, can suggest monitoring the chart for the triangle breakout which would also coincide with the C&H breakout as shown on the chart. There is the most confluences there to suggest that's out next direction from where we're at now.
Stay safe and happy trading everyone!
And remember - Don't use high leverage without the understanding of your risks of getting wrecked!
Trade active:
Breakout is in progress!
Now is the ideal time to set a LONG trade!
Try to catch the 0.618 entry position @ 57754.0k
Alternatively if you want a more guarenteed entry point open at 58000 or 57900k. Both are also good entries.
GL