The Ascending Triangle pattern forms when the price of a pair tests a resistance level and creates a horizontal top line (1, 3, 5), with an upward-sloping bottom line (2, 4) formed by a rising support level. The breakout can either be up or down, and it 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 a certain level, it may indicate growing investor confidence for a significant uptrend.
Once price breaks outside of the triangle, day traders and swing traders should trade with an UP trend. Consider buying a pairat the upward breakout level. To identify an exit, compute the target price by adding the pattern height to the breakout point. For upward breakouts, the level is the top horizontal line (1, 3, 5). The pattern height can be calculated by taking the difference between the resistance level set by the horizontal line, and the lowest low.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to sell at or below the breakout price.
The Law of Demand states that as prices increase, demand will decrease, and vice versa. That is to say, inversely related
“Load” mutual funds are those which have a fee structure that includes a front-end or back-end sales charge
A bull call spread is a vertical spread that buys and sells calls in a way that benefits from upward price movement
The cost of long-term care insurance varies depending on the policy and the age of the insured. Expect to pay between...
Publication 535 is a useful guide which enumerates most of the possible business expenses that can be deducted, describes the extent two which they can be deducted
Open-source software code can be viewed and changed by anyone, but it actually works in the favor of cryptocurrencies
The Detrended Price Oscillator (DPO) is a relatively uncomplicated tool of analysis that can be used to simplify a chart and identify conditions ripe for buying or selling
A Ponzi scheme is a scandal where new investment money is used to create the illusion of returns
Specialty funds may be completely unique and offer investors a strategy that they cannot find elsewhere, or they may...