I like this formation.
Usually I find success when the patterns are tight and bouncing off the trend lines vigorously. Also, when EMAs converge (and this is a countertrending pattern) this usually mean it's time for a trend change. I Hope this goes down well. If it doesn't I may need to recalculate the profit target for an upside breakout. I need to recalculate it again manually because I need to know the breakout price. Do you know you can still profit from a failed triangle?
Fun fact: the probability of hitting your price target in a failed descending triangle breakout is higher than the a successful descending triangle breakout. What's the statistics? 84% vs 54%
But don't worry I've factored it all in. The profit target I set already have the probabilities factored in. This means the "chance" of hitting profit target is almost 100% unless there's some bizarre news or really choppy markets. I would also like to add that the profit target set is the MINIMUM price target. This means it has the potential to go down further. You may want to plant your stop losses there to secure your gains.
I also included some Fibs so you can adjust your stops accordingly. Also, I find that it's a good way to avoid getting freaked out by the pullbacks. pullbacks are common so don't fret. You should be safe if you didn't set super tight stop losses. Pullbacks are most violent at the 65% to 100% so take a chill pill and ride it out
EDIT: oh dear looks like a complete pattern failure. Volume too low perhaps? I intend to wait it out. Since I see mini flag pole. Since the pattern fail it will be rising up (unless it's a fake breakout). Profit target for this failed pattern is 2.1666
Usually I find success when the patterns are tight and bouncing off the trend lines vigorously. Also, when EMAs converge (and this is a countertrending pattern) this usually mean it's time for a trend change. I Hope this goes down well. If it doesn't I may need to recalculate the profit target for an upside breakout. I need to recalculate it again manually because I need to know the breakout price. Do you know you can still profit from a failed triangle?
Fun fact: the probability of hitting your price target in a failed descending triangle breakout is higher than the a successful descending triangle breakout. What's the statistics? 84% vs 54%
But don't worry I've factored it all in. The profit target I set already have the probabilities factored in. This means the "chance" of hitting profit target is almost 100% unless there's some bizarre news or really choppy markets. I would also like to add that the profit target set is the MINIMUM price target. This means it has the potential to go down further. You may want to plant your stop losses there to secure your gains.
I also included some Fibs so you can adjust your stops accordingly. Also, I find that it's a good way to avoid getting freaked out by the pullbacks. pullbacks are common so don't fret. You should be safe if you didn't set super tight stop losses. Pullbacks are most violent at the 65% to 100% so take a chill pill and ride it out
EDIT: oh dear looks like a complete pattern failure. Volume too low perhaps? I intend to wait it out. Since I see mini flag pole. Since the pattern fail it will be rising up (unless it's a fake breakout). Profit target for this failed pattern is 2.1666
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.