ETH: Bearish Ascending Triangle
Ethereum seems to be forming a bearish continuation pattern. Furthermore, on the weekly chart, the price has recently printed a pretty nasty bearish candlewick.
Ascending Triangles are characterized by a series of higher lows but the same highs. The horizontal upper trendline will experience multiple efforts as price resistance. The shape of the Ascending Triangle is altered by the slope of the ascending support line which ‘converges’ or; is inclined toward, the upper resistance line. Ascending Triangles vary in their duration, but will have at least two swing highs and two swing lows in price.
This bearish continuation pattern has 3 phases:
1) Background: A Strong impulsive, thrusting action with a surge in volume & price establishes a clear picture of the controlling bearish trend direction. In our ascending triangle price pattern it is represented visually by a Pole. Deeper and more drama the better as the Pole is the Key to recognizing the potential for the continuation of the pattern. The Pole represents trend direction as well as its strength & often this pattern is initiated as a new breakdown in price from an established area & sellers are in control.
2) The second phase is a pause for consolidation of the action both in volume & price and is represented by the ascending triangle .
3) The pattern confirms as a bearish continuation pattern if the action creates a new bearish breakdown with a surge again from the bears in both volume & price.
Ascending Triangles are characterized by a series of higher lows but the same highs. The horizontal upper trendline will experience multiple efforts as price resistance. The shape of the Ascending Triangle is altered by the slope of the ascending support line which ‘converges’ or; is inclined toward, the upper resistance line. Ascending Triangles vary in their duration, but will have at least two swing highs and two swing lows in price.
This bearish continuation pattern has 3 phases:
1) Background: A Strong impulsive, thrusting action with a surge in volume & price establishes a clear picture of the controlling bearish trend direction. In our ascending triangle price pattern it is represented visually by a Pole. Deeper and more drama the better as the Pole is the Key to recognizing the potential for the continuation of the pattern. The Pole represents trend direction as well as its strength & often this pattern is initiated as a new breakdown in price from an established area & sellers are in control.
2) The second phase is a pause for consolidation of the action both in volume & price and is represented by the ascending triangle .
3) The pattern confirms as a bearish continuation pattern if the action creates a new bearish breakdown with a surge again from the bears in both volume & price.
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