SHIBA INU is forming an ascending triangle on a 4-hour time frame. The price oscillates between the upper resistance and lower support levels.
What does that mean?
An ascending triangle forms when the price is about to break the resistance line, signaling a potential reversal of a previous downward price trend.
We can observe three touches on the upper and three touches on the lower line. The volume is diminishing throughout the pattern, which serves as another confirmation factor for the validity of the pattern.
What to look out for?
Currently, traders should watch out for a breakout above the resistance line. However, ascending triangles tend to experience small false breakouts. Therefore, it is important to remain neutral until the breakout is confirmed. One way to confirm the breakout is through significant volume.
What does that mean?
An ascending triangle forms when the price is about to break the resistance line, signaling a potential reversal of a previous downward price trend.
We can observe three touches on the upper and three touches on the lower line. The volume is diminishing throughout the pattern, which serves as another confirmation factor for the validity of the pattern.
What to look out for?
Currently, traders should watch out for a breakout above the resistance line. However, ascending triangles tend to experience small false breakouts. Therefore, it is important to remain neutral until the breakout is confirmed. One way to confirm the breakout is through significant volume.
Trade closed: stop reached:
As we mentioned, ascending triangles tend to have false breakouts, and it is always better not to enter the trade without confirmations.
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Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.