First Lesson About Chart Patterns 1 - symmetrical triangle (Upward and downward) Model Classification: Continuous model Type: Ascending T...
First Lesson About Chart Patterns
1 - symmetrical triangle
(Upward and downward)
Model Classification: Continuous model
Type: Ascending
Type of transaction: Medium - long term
Probability of occurrence: Moderate
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The ascending symmetrical triangle comes after an ascending wave after which the trend continues as it is rising as it is a continuation pattern to confirm the continuation of the trend.
Form configuration scenario:
- As the price rises in an uptrend, a bounce occurs from a resistance area where the price is given down on the illustration in point 1.
This point is adopted as the highest peak of the model as a whole.
The decline continues because of that resistance until the price bounces up again from a certain support point
A new bottom is formed and is depicted on the figure (2), which will be the lowest bottom of the model.
((If we have the highest peak (1) and the lowest bottom (2)))
- The price bounces from point (2) upwards, until it bounces from a new resistance area (new top) and is indicated on the illustration in point (3)
Which should be lower than the top (1).
- The price bounces back from the top (3) down, until it bounces from a new support area (new bottom) and is indicated on the illustration in point (4)
Which should be higher than the bottom number (2).
- Price rises again from point (4) until we reach a new peak number (5)
And with it the form is completed
"When the model is complete, we have two opposite, up and down trends that meet at one point along each of them."
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Login Buy:
Price rally, downtrend, top (5) and top (3) respectively are expected
Once the top is broken (3) a buy contract is opened, and in case the price bounces back to retest, and then returned and broke the same area, the buy is also entered.
That is, we have two ways to enter a buy, either with a direct break or after a retest.
Target :
Is the same distance between the top (1) and the bottom (2)
That distance between the top (5) is measured to the target.
STOP:
Bottom number (4) is penetrated downwards and closes down from it ...
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.. an illustration on the chart ..
End
Next Lesson will be Symmetrical descending triangle
Author : mohammedgaber
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