LRC possible Ascending Triangle
Hello Traders and Happy Valentines Day!
I hope you all enjoyed the Super Bowl game! I am from Detroit so this was great for me as it is probably the closest we will get to seeing a Super Bowl! Thanks Stanford, you deserve it!
Analyzing Loopring we are hoping to see a formation of an ascending triangle. The last swing down presented a small amount of bullish divergence on the MFI on a daily time frame which often sends the price in the opposite direction reversing the trend.
Of course this is only possible if the lower ascending trend line holds and price bounces from this line growing above the top resistance and holding it as support. Trading this pattern you’d want to look for volume growth of buyers coming in every time the price bounces off the lower ascending line. You can enter this trade in two areas. Both labeled on the chart. Entering at the bottom of the structure at the first labeled entry will get you a greater risk to reward within the trade. Adding to your trade after the break of the upper resistance is how I generally approach this pattern.
One thing to note is this pattern will often present a false breakout of the top of the pattern as shown here. Keep this in mind when measuring the target which is just the distance of A to B added to the top of the pattern when and where the price breaks out.
Generally this pattern is a continuation pattern yet, can be found in reversals also.
Best luck with this trade and I hope this information has helped you understand this pattern better.
Savvy
I hope you all enjoyed the Super Bowl game! I am from Detroit so this was great for me as it is probably the closest we will get to seeing a Super Bowl! Thanks Stanford, you deserve it!
Analyzing Loopring we are hoping to see a formation of an ascending triangle. The last swing down presented a small amount of bullish divergence on the MFI on a daily time frame which often sends the price in the opposite direction reversing the trend.
Of course this is only possible if the lower ascending trend line holds and price bounces from this line growing above the top resistance and holding it as support. Trading this pattern you’d want to look for volume growth of buyers coming in every time the price bounces off the lower ascending line. You can enter this trade in two areas. Both labeled on the chart. Entering at the bottom of the structure at the first labeled entry will get you a greater risk to reward within the trade. Adding to your trade after the break of the upper resistance is how I generally approach this pattern.
One thing to note is this pattern will often present a false breakout of the top of the pattern as shown here. Keep this in mind when measuring the target which is just the distance of A to B added to the top of the pattern when and where the price breaks out.
Generally this pattern is a continuation pattern yet, can be found in reversals also.
Best luck with this trade and I hope this information has helped you understand this pattern better.
Savvy
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