MANA 1D has been forming an ascending triangle in downtrend as opposed to the more common formation during an uptrend.
To form this pattern you need an initial rally where price action begins to consolidate between a flat resistance point and rising support trend line before continue on.
Unlike in an uptrend, when the ascending triangle pattern develops during a downtrend it’s more likely to signal a reversal than a continuation.
Very rarely will the pattern form perfectly and in the current market conditions we have seen many fake outs and overthrows across most coins so always look for confirmation.
How to trade this pattern:
Go long on resistance break out but only after confirmation.
Go short on support breakdown but only after confirmation.
With that being said it's seems more favorable for the bears that we would see a breakdown of support as the prevailing trend is downward and can often lead to resistance holding. With pattern trading or candlestick patterns its always wise to use another tool for confirmation of your analysis. Something such as the RSI can improve your odds of succes.
To form this pattern you need an initial rally where price action begins to consolidate between a flat resistance point and rising support trend line before continue on.
Unlike in an uptrend, when the ascending triangle pattern develops during a downtrend it’s more likely to signal a reversal than a continuation.
Very rarely will the pattern form perfectly and in the current market conditions we have seen many fake outs and overthrows across most coins so always look for confirmation.
How to trade this pattern:
Go long on resistance break out but only after confirmation.
Go short on support breakdown but only after confirmation.
With that being said it's seems more favorable for the bears that we would see a breakdown of support as the prevailing trend is downward and can often lead to resistance holding. With pattern trading or candlestick patterns its always wise to use another tool for confirmation of your analysis. Something such as the RSI can improve your odds of succes.
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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.
🐦 Twitter for more updates: twitter.com/JamObv
🤖 Free Discord: discord.gg/6NJrBMM2sT
🤖 Free Discord: discord.gg/6NJrBMM2sT
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.