Good Morning, I was wondering if someone can help me interpret this chart? I'm a beginning trader. Is this an ascending triangle? or a pointed flag? its on a 90 day chart and the volume is decreasing. same for the 20 day chart it shows a more symmetrical triangle with the consolidation i'm assuming instead of a breakout though it will drop in price because of the decreasing volume? or is this typical of a consolidation triangle? and I have to just wait for a breakout? Im not asking you how to trade it,Im asking you how to interpret it
You can use charts posted by others to determine what you have. It does not matter what you call it...its just a continuation triangle pattern or a bullish pennant pattern. Google is free...you really should use it because all the below links I found on Google in less than a minute...seriously. If you look a few minutes longer on Google...you can find sites that keep statistics on these types of chart patterns although most don't reveal their trade management rules (hiding the details behind the stats). Most of the stats I've seen years ago was between 50% - 60% success rate on forex and futures. I don't remember the stats on stocks but it was tested on stocks in the S&P 500. https://www.pinterest.ca/pin/789185534673595355/ https://www.forexfactory.com/attachment.php?attachmentid=2886802&stc=1&thumb=1&d=1531085299 https://www.forexboat.com/wp-conten...inuation-Forex-Chart-Patterns-Cheat-Sheet.png https://www.moneycontrol.com/news/b...de-using-triangle-chart-patterns-3143921.html By the way, I've seen traders be successful with trading the breakout and I've seen traders be successful in fading these patterns. Also, you stated in an earlier message what you used in your trading. You're now going to add continuation triangles to your trading plan or did you abandon your other trading plan that you mentioned ? How much experience do you have in trading this particular pattern on simulator or real money trading ? wrbtrader
A very good site (imo) to learn about chart patterns is... http://thepatternsite.com/visualcpindex.html
Detest when people draw through bars. Showing a Double top/Ascending triangle, and there should be rules somewhere you just don't start trendlines from anywhere, that is more bias form fitting. It has formed an Ascending triangle in an uptrend and too often I seen this to drop back down being it shot up too fast and being an Ascending Triangle. Bulkowski says it best: http://thepatternsite.com/at.html
%% Its an uptrend+ its not rocket science. If that is 52 weeks, it may mean something; if its 5 minutes bars/candles on a 7 hour chart its noise.Good question.Of course any answers are only a very small part of the deal- but every bit helps. Hope this helps-it helped me.
lol this is another case where a newbie asks a question about how and the answer may not be the how OP you are reading tea leaves that are completely meaningless. check my thread 'trading is easy' and see how the price action is analyzed with current events to make some sense out of the market. for your question - first of all the so called 'bull flag triangle' etc, they are completely meaningless... going up is going up, makes no difference if the previous few candles went straight up or congested in a narrow range. and secondly, these things are also correlated to the broader market... so how to answer your question lol - first off you need to go top down... i.e. far easier to swim with the current (the index)... read the index first, then see if you can magnify your gains with individual stocks.
It's not telling you anything right now, except that something will probably happen sooner or later. You can't play it as a bull flag until you see confirmation, IMHO. It could flatline for weeks or it could drop like a Mississippi prom dress or it could do the fun thing and head for the moon. You can't make a decent guess from the technicals until you see it actually start to move.
To answer the question, it looks to me what I call a decreasing wedge formation. You are now at the tip of the thing, very tippy tippy, right on the point. Ouch. Expect a hard break in either direction. Looks like it is a small stock? Considering it blasted higher north in last week of July, I would reckon' It is heading south on the break.