Ascending Triangle Confirmation:
- There are 2 swing highs touching the horizontal line
- There are 2 swing lows touching the other triangle line
- Before the triangle, the stock was trending with strong volumes
- In the triangle, the stock is getting consolidated with contracted volumes
Interpretation:
- Ascending Triangle is a continuation pattern
- Here it is getting created after an uptrend
- If it breaks out from the triangle with high volume, it can continue the uptrend with target price equal to horizontal line + the base of the triangle
- If a false breakout occurs, with low volume, it can breakdown and downside can be of similar magnitude
Conclusion:
Wait for the stock to move out of Triangle to see which breakout occurs. (positive/false)
As it is a trend continuation pattern, It should be positive breakout ideally as per the chart.
- There are 2 swing highs touching the horizontal line
- There are 2 swing lows touching the other triangle line
- Before the triangle, the stock was trending with strong volumes
- In the triangle, the stock is getting consolidated with contracted volumes
Interpretation:
- Ascending Triangle is a continuation pattern
- Here it is getting created after an uptrend
- If it breaks out from the triangle with high volume, it can continue the uptrend with target price equal to horizontal line + the base of the triangle
- If a false breakout occurs, with low volume, it can breakdown and downside can be of similar magnitude
Conclusion:
Wait for the stock to move out of Triangle to see which breakout occurs. (positive/false)
As it is a trend continuation pattern, It should be positive breakout ideally as per the chart.
Trade closed: target reached
Target achieved as predicted. :)
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.
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.