Symmetrical Triangle Play on Dash
Updated
This is a simple support and resistance play on Dash with the basic adage: the trend is your friend into the end. We have a 50 day uptrend and a three week consolidation so far within this triangle. That means we have support and resistance trades that really don't require that much overthinking. I am long at the triangle support with a stop loss as shown in the main chart. Take profit will be just short of the fib retracement golden pocket at $345. Risk to Reward is a nice 14. The dotted line is the height of the triangle and it concurs with the fib retracement target at 1.618.
Thirty minutes is a pretty low time frame to be looking for hidden bullish divergence but it is there in the chart below. Given we have a 50 day uptrend and that contains a 3 week consolidation pattern we are looking to simply set a stop loss at support with a bit of validation from the indicator. This is our third touch on the triangle support so it lets us get a tight stop on low time frames.
The bearish scenario is rather than being a consolidation pattern this is an ABC correction and we would have downside targets around 160 or 120 ash shown below. The rational for that trade would be that the blue line had flipped from support to resistance. Should the price break down from the triangle I would be watching it to retest the previous triangle support as resistance before taking a short. In other words, according to my system I would not be short just yet.
And I want to give a fair hearing to the bearish scenario. Based in daily indicators alone this chart looks really bad. But as I said in the beginning, this is a play on continuation to the upside and the triangle support is currently being validated, so I am taking my long in the face of this brutal daily chart.
If you are familiar with my system then the chart below makes a lot of sense. I use the VSTOP and MTF VSTOP to determine trend and dynamically chart support and resistance. This play is using continuation to assume the VSTOP will act as dynamic support in this instance hold. If I am wrong I will be stopped out in short order.
The linked ideas show some relatively low time frame formations that made target in short order. The BTC head and shoulders did suppose that the formation could over-perform due to how tenuous the bitcoin situation was but when price broke down it went right to the 1.618 fib retracement level before pamping. Likewise on the dashbtc target. I was hoping for more continuation but price went right to the 1.618 level then dumped. This time I am going to be agnostic when it comes to hoping for some over-performance. I will be taking all of my profits, thank you.
Thirty minutes is a pretty low time frame to be looking for hidden bullish divergence but it is there in the chart below. Given we have a 50 day uptrend and that contains a 3 week consolidation pattern we are looking to simply set a stop loss at support with a bit of validation from the indicator. This is our third touch on the triangle support so it lets us get a tight stop on low time frames.
The bearish scenario is rather than being a consolidation pattern this is an ABC correction and we would have downside targets around 160 or 120 ash shown below. The rational for that trade would be that the blue line had flipped from support to resistance. Should the price break down from the triangle I would be watching it to retest the previous triangle support as resistance before taking a short. In other words, according to my system I would not be short just yet.
And I want to give a fair hearing to the bearish scenario. Based in daily indicators alone this chart looks really bad. But as I said in the beginning, this is a play on continuation to the upside and the triangle support is currently being validated, so I am taking my long in the face of this brutal daily chart.
If you are familiar with my system then the chart below makes a lot of sense. I use the VSTOP and MTF VSTOP to determine trend and dynamically chart support and resistance. This play is using continuation to assume the VSTOP will act as dynamic support in this instance hold. If I am wrong I will be stopped out in short order.
The linked ideas show some relatively low time frame formations that made target in short order. The BTC head and shoulders did suppose that the formation could over-perform due to how tenuous the bitcoin situation was but when price broke down it went right to the 1.618 fib retracement level before pamping. Likewise on the dashbtc target. I was hoping for more continuation but price went right to the 1.618 level then dumped. This time I am going to be agnostic when it comes to hoping for some over-performance. I will be taking all of my profits, thank you.
Trade closed: stop reached
That was quick, bearish scenario now in play.
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