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Descending Triangle

NKE Potential Double Top - What's Next?Description NKE has now rejected the 175 level for the third time, now I am tracking this Descending Triangle consolidation pattern. This could be a Double-Top pattern in the making, although the Double-Top is notoriously difficult to track, and nearly never confirmed until long after is has finished it's formation. Evidence indicative of the usual Double Top: Two tops at approximately the same level, but more than a month apart Somewhat less activity on the second advance than the first Dull or irregular, rounding-type of recession between them It is noted that should a small H&S or descending triangle occur at the second top, long commitments should be protected with a tight stop, or switched to a more promising chart picture. In NKE's chart, we see two Tops at approximately the same level (within 3%), and approximately 3 months apart, which is a strong indication that this is not a normal congestion or consolidation pattern. Slightly more activity can be seen on the second advance than the first, and there is distinctly low activity throughout the entire pattern. The recession between the tops marks one of the only increases in activity in the entire pattern, taking place perfectly at the last known resistance around 145, and marked with a large gap down following the earnings report on 23SEP. At the second peak, NKE is currently undergoing some type of consolidation that appears to be a descending triangle with irregular volume. What, in picture, appears to be a "Descending Triangle" has highly irregular volume throughout and could potentially be portrayed as a Falling Wedge. The Descending Triangle has bearish implications, while the Falling Wedge has bullish implications. Although the volume displayed is not conducive to either formation, it could be explained by high volatility in the indexes. With these things in mind, I believe the best position to put on is a 3-month Straddle. The options market right now is implying about a 14% move in either direction in the next 3 months, so any expiration beyond 146 or 194 would be profitable in that time period, with the last potential support being at 143 for the downside, and all-time highs to the upside. I, however, will be putting on a directional play based off of where I think the indexes are heading: Long Put Levels on Chart SL > 175 PT : 150 *Stops based off underlying stock price, not mark to market loss The Trade BUY 01/07/22 155P R/R & Breakevens vary on fill. This put generates a good breakeven in advance of the 145 support if held until expiration. If you would like me to build the Straddle or build a Strangle, just ask. The Strangle will create a cheaper position, but push the breakevens further away from the current stock price. As always, time will tell Manage Risk Only invest what you are willing to lose
NYSE:NKEShort
by BarnardR
BTC constantly rejected by descending EMAsHello guys, as mentioned in previous posts, Im just a day trader showing my ideas, do not take this as financial advice, always do your own research (DYOR). In previous ideas I talked about how BTC was struggling to get past the 48k resistance, suck in a range between 48k and 46k. We expected some downturn, which we got, and we are now trading in the low side of that range at the border of 46k. At the same time, we can see that the 600ema, 200ema, and 100ema are closing in, and we can see how price reacted with them in the past (Specifically how the 600ema rejects every attempt to break the downtrend), so we can safely say we are in a ranging downtrend, with the ceiling closing in. Things are not looking bullish short term for the pair, and I expect the local support that spanned through 46.5k to 47.5k to turn into a local resistance. We can also see the formation of a descending triangle in the 5min and 15min charts, which would suggest a sharp turn to the downside after a few cycles (However BTC rarely follows candlestick patterns). In my opinion, we're revisiting lows, either in a couple of hours or after ranging for a few days in this lower band (46.5k to 47.5k). Im personally looking into entering a LONG position once we are clear of this range, which, more likely to the downside, at 42k. Again, this is just an idea, DYOR. Any feedback is apreciated.
Short
by cryp70g0d
Breakout or Breakdown?LINK is currently within a Falling Wedge (bullish) inside a massive Descending Triangle (bearish)--and both are converging on the same general point. Sellers are exhausted and supportive momentum appears to be building, but the Descending Triangle presents a lot of overhead resistance. My view is that the resistance will continue to suppress the price for 1-2 weeks before we see enough support to breakout. I'm considering averaging into a position here. -------------------------------------------------- These are my personal views and not financial advice. Please do your own research before investing. I'd love to hear your thoughts, ideas and feedback. Feel free to comment and I'll try and get back to you quickly. If you appreciated this analysis, consider Liking or Following. Thanks!
Long
by mercury_rising
SHORT on GBP/CHFMajor Descending Triangle on the Higher timeframes for this pair. I am simply trying to catch the falling momentum coming off the resistance trendline even though the best trade would be to wait until price breaks out of the triangle in whichever direction it decides to break out of. Here is the play I am taking on this trade: PAIR = GBP/CHF ORDER TYPE = SELL STOP (PENDING ORDER) LOT SIZE = Micro lot (0.01) (0.02) ENTRY PRICE = 1.21967 STOP LOSS = 1.23701 - 173 PIPS / $17.30 LOSS TAKE PROFIT = 1.17743 - 422 PIPS / $42.40 GAIN
Short
by BBIDF
2
BTC failed to breach 48k once againHello everyone, as mentioned in other ideas, I’m just a day trader looking to learn. Im in no ways an expert so please don’t take my ideas as financial advise. Always do your own research. As I suggested in my first post, BTC attempted to breach 48k just before new year, formed a descending triangle and with options expiryng at 00:00 (With the max pain price at 48k) I expected a sharp down turn to the 46k support, which ended up playing out. Then in my second idea, I noticed the 46k support was holding and I expected it to rise facing some resistance at 47k. I noticed it formed another descending triangle, and thought the pair would re-test de 46k but it broke to the upside and re-tested the 48k resistance. Now after re-testing the 48k resistance, BTC is down to 47k and forming a new descending triangle, with the MACD in a bearish position and the RSI turning down. I expect the price to re-test the 46k resistance and, if the 46-45k resistance is broken I expect a sharp drop to at least 42k (A great place to enter a LONG position). Personally Im waiting for the pair to reach lower prices (42k or lower) to enter a LONG position. Again, this is just my view. I would love some feedback. Cheers!
Short
by cryp70g0d
BTC facing resistance at 47kHello everyone, New Year’s update. Following my two previous ideas, BTC attempted to break the 48k resistance but formed a descending triangle. With options expiring at midnight, the maximum pain price being 48k and the formation of a descending triangle, I expected the price to drop to the 46k resistance, which ended up playing out. On my second idea, I noticed an attempt to break the 46k support, with a momentariy breakout. However support held and formed an ascending triangle, which suggested a rise to 47k, which played out. Now the pair is facing resistance at the 47k level, and its forming a new descending triangle, suggesting a continuation of the downtrend from 48k to the 44k-42k strong daily support. Personally I think this would be a good scenario, and a great oportunity to grab some fresh BTC at lower prices. I doubt we can achieve new ATH with this uncertainty and low trading volumes. Im just a day trader sharing my ideas, don’t take them as financial advice. I just want to get some feedback and learn. Cheers!
Short
by cryp70g0d
BTC facing resistance at 46.5k expecting to hit lower levelsHello everyone again, I'f fairly new at, just looking for feedback. As seen in my previous idea, BTC was forming a descending triangle after an attempt to break the 48k resistance. This with the options expiry at 00:00 I expected a breakout to the downside with very high volatility, which ended up happening and the pair quickly dropped to 46k. Now the 46k level acted as support, after a failed breakout to 45.5k that lasted a few minutes. Now the pair is hovering between the 45.5k and 46.5k levels, forming an ascending triangle this time, which can bring it up to 47k where there is more local resistance. However, trading volumes are descending, and after 00:00 (Expiry) I expect the pair to descend further. Personally I'm waiting to enter a long position at the 42k level where strong daily support can be found. Again, Im just looking for some feedback. Do your own research. Cheers!
Short
by cryp70g0d
5
$BNBUSD DESCENDING TRIANGLE, RESISTANCE LINE, ACCUMULATION ZONE$BNBUSD entry PTs 500-514 Target PTs 935-990 and higher DESCENDING TRIANGLE, RESISTANCE LINE, ACCUMULATION ZONE AT LOCAL ZONE AND TRENDLINE Currently price trades in accumulation zone range of PTs 507-515 I think today or tomorrow, price will exit from the accumulation zone and break the resistance line of the descending triangle juncture $BNBUSD will continue to show solid uptrend Target is PTs 935-990 and higher per $BNBUSD
BINANCE:BNBUSDLong
by BADQOMOCAWGOWLD
2
TSLA Descending Triangle Break Weekly Options PlayDescription This idea originates from a different idea in which I interpreted the chart as a Symmetrical Triangle. I believe this interpretation was incorrect due to the consideration I put on the beginning of the gap up into the pattern. The opening price of the first candle following the gap is a technically irrelevant fact, unlike the support found after TSLA falls from the high, in this case the ATH, where it bounced three additional times, each time producing a lower high (a Descending Triangle). The Descending Triangle is bearish in purport, displaying a lower demand zone, and a descending liquidation zone, representing a growing overhead supply vs a stationary demand zone, until the sellers become stronger than the buyers (or buyers reverse), overtaking the lower boundary. Historically speaking, it is common for the lower boundary of the preceding pattern to become a new resistance, where once-buyers will be happy to liquidate, having been "made whole". The price target implied by the pattern is between 320 and 670 or less than 670. As a take from contrarian traders, such as Brent Donnelly, there is an application of the Magazine Cover Bias today, as TSLA CEO, Elon Musk, has been chosen as "Person of the Year" in time magazine. This is very reminiscent of 99', when AMZN CEO, Jeff Bezos, was chosen as "Person of the Year", shortly before the beginning of AMZN's two-year bear market. (Related idea linked) Using long puts to maintain a positive vega ahead of FOMC this week. Long Put Levels on Chart SL > 1000 PT : 700 *Stops based off underlying stock price, not mark to market loss The Trade BUY 12/31 850P R/R & Breakevens vary on fill. The price target set with the idea is higher than the pattern implied price target due to the expiration of the position. This position is updated in the linked Related Idea, where there is a better explanation of alternate short strategies. Manage Risk Only invest what you are willing to lose
NASDAQ:TSLAShort
by BarnardR