I’m going to focus on the last few days where we have seen an ascending triangle formation on a 4hour chart. Ascending triangles are bullish patterns, as the pattern develops volume contracts as we can see, there should be volume expansion to confirm upper resistance breakout. When upper resistance is broken it should then become support. Sometimes it will return to support before it moves up convincingly. Target from breakout is generally projected by measuring the widest part of the triangle formation and applying it to the breakout point.
In contrast to the symmetrical triangle, an ascending triangle has a definitive bullish bias before the actual breakout.
Symmetrical triangles are neutral formations that rely on the impending breakout to dictate the direction of the next move. With ascending triangles, the horizontal line represents overhead supply that prevents the stock from moving past a certain level. Even though the price cannot rise past this level, the reaction lows continue to rise.
It is these higher lows that indicate increased buying pressure and give the ascending triangle its bullish bias.
I’m still bullish and on route to $6K, I'm thinking $6400 target.
In contrast to the symmetrical triangle, an ascending triangle has a definitive bullish bias before the actual breakout.
Symmetrical triangles are neutral formations that rely on the impending breakout to dictate the direction of the next move. With ascending triangles, the horizontal line represents overhead supply that prevents the stock from moving past a certain level. Even though the price cannot rise past this level, the reaction lows continue to rise.
It is these higher lows that indicate increased buying pressure and give the ascending triangle its bullish bias.
I’m still bullish and on route to $6K, I'm thinking $6400 target.
Comment:
typo - it's a 1 hour chart