The Ascending Triangle pattern has a horizontal top line (1, 3, 5) representing a resistance level, and an upward-sloping bottom line (2, 4). The Breakout can either be up or down, and the direction of the Breakout will determine whether the Target Price is higher or lower.
This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. When the price of a pair consolidates around highs it might indicate that a significant downtrend is ahead.
If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with the DOWN trend. Consider selling the pair short or buying a put option on the downward breakout price. To identify an exit, compute the target price by subtracting the pattern height from the breakout point. For downward breakouts the breakout level is the price at the lowest low within the triangle (2). The pattern height is the difference between the level of the top horizontal line and the lowest low.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
While you are working for your employer, you typically may not withdraw money from your Defined Benefit Plan
Bitcoin is technically illegal in a few parts of the world, but for the most part, it remains in the extra-legal realm, existing outside of the traditional legal system
New Zealand and Australia have a tax for offshore investments that fall into the definition of Foreign Investment Funds
Market psychology is the overarching sentiment of investors toward the stock market, and also their tendency as a...
CTRs are required filings to the Financial Crimes Enforcement Network to report all cash transactions worth over $10,000
The October Effect is an anecdotally-founded fear that markets are vulnerable to catastrophe in the month of October
Index futures are futures contracts written on an index in which a large position can be held with a small margin
An expense ratio is a measure of the total annual cost that a fund charges its shareholders for managing their investments.
As a general rule of thumb it's good to have six months’ worth of expenses saved and kept exclusively for emergencies