WILL THIS CHART QUALIFY AS DEFINITE BREAKOUT FROM ASCENDING TRIANGLE PATTERN????
The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.
Top Horizontal Line: At least 2 reaction highs are required to form the top horizontal line. The highs do not have to be exact, but they should be within reasonable proximity of each other. There should be some distance between the highs, and a reaction low between them.
Volume: As the pattern develops, volume usually contracts. When the upside breakout occurs, there should be an expansion of volume to confirm the breakout. While volume confirmation is preferred, it is not always necessary.
Target: Once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout.
HEIGHT OF TRIANGLE=APPROX 4100 PTS
Breakout Point near 6330+4100=10430 levels
also a channel may develop b/w lower blue T/L and pink lines
trgt of channel psttern is 8920 in next 10-12 months
Return to Breakout: A basic tenet of technical analysis is that resistance turns into support and vice versa. When the horizontal resistance line of the ascending triangle is broken, it turns into support. Sometimes there will be a return to this support level before the move begins in earnest.
any return(dip) towards 6330
X pips=6340-5120=1220pts
1st resistance= breakout pt + x pips
=6340+1220
=7560ns levels
The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.
Top Horizontal Line: At least 2 reaction highs are required to form the top horizontal line. The highs do not have to be exact, but they should be within reasonable proximity of each other. There should be some distance between the highs, and a reaction low between them.
Volume: As the pattern develops, volume usually contracts. When the upside breakout occurs, there should be an expansion of volume to confirm the breakout. While volume confirmation is preferred, it is not always necessary.
Target: Once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout.
HEIGHT OF TRIANGLE=APPROX 4100 PTS
Breakout Point near 6330+4100=10430 levels
also a channel may develop b/w lower blue T/L and pink lines
trgt of channel psttern is 8920 in next 10-12 months
Return to Breakout: A basic tenet of technical analysis is that resistance turns into support and vice versa. When the horizontal resistance line of the ascending triangle is broken, it turns into support. Sometimes there will be a return to this support level before the move begins in earnest.
any return(dip) towards 6330
1st resistance= breakout pt + x pips
=6340+1220
=7560ns levels
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