Introduction:
In this post, we will be analysing a reversal symmetrical expanding triangle pattern that has formed over the past six months on the IDEA price. We will also be applying the projection tool provided by TradingView to predict the potential future movement of the price. Reversal
Symmetrical Expanding Triangle Pattern:
A reversal symmetrical expanding triangle pattern forms when two trend lines converge and meet at a common midpoint, creating a triangular shape. Unlike a traditional symmetrical expanding triangle pattern, a reversal symmetrical expanding triangle pattern is characterised by a divergence between the price and the indicator, indicating a potential change in trend. The pattern is considered bullish when the convergence occurs between two downtrends, and bearish when it occurs between two uptrends. The width of the triangle's base represents the strength of the trend, and the narrower the base, the stronger the trend.
Projection Tool Analysis:
To better understand the potential future movement of the price, we can use the projection tool provided by TradingView. The tool projects the future price movement based on the underlying supply and demand dynamics, as well as the psychological factors influencing market participants. Based on the analysis, the projection tool suggests that the price could move upwards towards the upper boundary of the triangle, potentially reaching the next resistance line. However, if the current trend consolidates, the price could touch the support line.
Conclusion:
In conclusion, the reversal symmetrical expanding triangle pattern combined with the projection tool analysis suggest that the price could move upwards towards the upper boundary of the triangle. It is important to note that the projection tool is only one of many tools used in technical analysis, and it should be used in conjunction with other indicators and charts to form a complete picture of the market. Thank you for reading, and happy trading!
In this post, we will be analysing a reversal symmetrical expanding triangle pattern that has formed over the past six months on the IDEA price. We will also be applying the projection tool provided by TradingView to predict the potential future movement of the price. Reversal
Symmetrical Expanding Triangle Pattern:
A reversal symmetrical expanding triangle pattern forms when two trend lines converge and meet at a common midpoint, creating a triangular shape. Unlike a traditional symmetrical expanding triangle pattern, a reversal symmetrical expanding triangle pattern is characterised by a divergence between the price and the indicator, indicating a potential change in trend. The pattern is considered bullish when the convergence occurs between two downtrends, and bearish when it occurs between two uptrends. The width of the triangle's base represents the strength of the trend, and the narrower the base, the stronger the trend.
Projection Tool Analysis:
To better understand the potential future movement of the price, we can use the projection tool provided by TradingView. The tool projects the future price movement based on the underlying supply and demand dynamics, as well as the psychological factors influencing market participants. Based on the analysis, the projection tool suggests that the price could move upwards towards the upper boundary of the triangle, potentially reaching the next resistance line. However, if the current trend consolidates, the price could touch the support line.
Conclusion:
In conclusion, the reversal symmetrical expanding triangle pattern combined with the projection tool analysis suggest that the price could move upwards towards the upper boundary of the triangle. It is important to note that the projection tool is only one of many tools used in technical analysis, and it should be used in conjunction with other indicators and charts to form a complete picture of the market. Thank you for reading, and happy trading!