As we know triangles can break out in either direction however ascending triangles favour an upward breakout. Rather than guessing we should wait for a candle close on either side of the trend line. Will be looking for increased volume on breakout too.
If we breakdown I'm looking towards the monthly open as the next major support area. If we break upward I'll take profit at the supply zone below the higher high. From here ill be looking to short unless we can break past the previous higher high before market structure broke, resuming our uptrend. Stop loss should be a close beneath the trend line of the triangle, exactly where that is will be clear after breakout.
If we breakdown I'm looking towards the monthly open as the next major support area. If we break upward I'll take profit at the supply zone below the higher high. From here ill be looking to short unless we can break past the previous higher high before market structure broke, resuming our uptrend. Stop loss should be a close beneath the trend line of the triangle, exactly where that is will be clear after breakout.
Comment:
A large bull candle broke out upwards from our triangle starting the trade, even though volume hasnt broken out this doesnt invalidate the pattern.
There's always a chance of a failed breakout reversal so a tight stop is placed beneath the trend line at 1100$ with a take profit at 1270$.
There's always a chance of a failed breakout reversal so a tight stop is placed beneath the trend line at 1100$ with a take profit at 1270$.
Trade closed: target reached:
I've been getting front run on my supply zones a lot recently and without even realising I set my take profit at 1250$ just before I went to bed which got tagged exactly.
Got lucky here but I think it's a sign to plan to do this is future
It could still reach 1270$ but I think it's more likely that it will form a lower low now that a LH has formed
postimg.cc/D43Vg1GW
I'll be longing above 1350$
Got lucky here but I think it's a sign to plan to do this is future
It could still reach 1270$ but I think it's more likely that it will form a lower low now that a LH has formed
postimg.cc/D43Vg1GW
I'll be longing above 1350$
I didnt get a chance to update this earlier but once we got new information I adjusted the trend line and we got a confirmed ascending triangle with 5 touches or swings