Chibuike_Odoh

Ascending channel - DASHUSDT Review

Education
BINANCE:DASHUSDT   Dash / TetherUS
Good day everyone.
Today I'll be discussing on ascending channels.

1. DEFINITION
What Is an Ascending Channel?
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.

2. ENTRY
In an ascending channel , you'll be looking for buy opportunities.
The buy opportunities should taken at key levels ( demand levels) such as the flip horizontal support, fibonacci retracement levels, ascending channel support.
When price is testing the ascending channel support. You should look out for trend reversal patterns such double bottom , inverse head and shoulders , falling wedge , ascending triangles, bullish flag , descending broadening wedge , symmetrical triangle .
Your entry should be a breakout above the resistance levels of each reversal patterns.
Double bottom - breakout above the neckline resistance.
Inverse head and shoulders - breakout above the neckline resistance.
Falling wedge - breakout above the wedge resistance.
Ascending triangle - breakout above the ascending triangle horizontal resistance.
Bullish flag - breakout above the flag resistance.
Descending broadening wedge - breakout above the wedge resistance.
Symmetrical triangle - breakout above the symmetrical triangle inclined resistance.
Also, RSI ( bullish divergence signal) can be an trend reversal signal.

3. TARGET ( TAKE PROFIT)
After your your trigger entry, comes your target level (the level you take your profits).
The levels can be identified by using fibonacci extension tool or setting take profits at key resistance levels (such as the previous swing high and ascending channel resistance.

4. STOP LOSS AND SETUP INVALIDATION
Your setup invalidation should be a breakdown below the ascending channel support.
Your stop loss should be a breadown below the trend reversal pattern support.

TRADE EXAMPLE
I'll be using my trade idea on DASHUSDT as an trade example on the ascending channels.
As you can see in my previous analysis, price was testing the ascending channel support and I identified the formation of a symmetrical triangle pattern as a potential reversal pattern .
Buy entry ⬆️ - breakout above the symmetrical triangle resistance.
Targets 🎯 ( key resistance levels, fibonacci extension levels, ascending channel resistance.
Stop loss 🔴 - breakdown below symmetrical triangle support.
Setup invalidation ❌ - breakdown below the ascending channel support.

Thank you.

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