LITECOIN -8/9/2022-
• Symmetrical triangle on daily chart
• Breakout could be in either direction
• Target distance from breakout point is distance between highest and lowest point in the triangle
• 30 in this case (69.86-39.86)
• Triangle is shrinking so we are close to breakout
• Scenario 1: bearish breakout around 50 +/-, target is 20 +/-
• Scenario 2: bullish breakout around 60 +/-, target is 90 +/-
Note: Ideally, volume tends to decrease as the triangle shrinks and get close to breakout. So I added a volume indicator below the chart to highlight this idea.
Advice: It is recommended not to rush and place orders before getting clear confirmation of a successful breakout. Keep in mind that breakouts can sometimes be fake.
• Breakout could be in either direction
• Target distance from breakout point is distance between highest and lowest point in the triangle
• 30 in this case (69.86-39.86)
• Triangle is shrinking so we are close to breakout
• Scenario 1: bearish breakout around 50 +/-, target is 20 +/-
• Scenario 2: bullish breakout around 60 +/-, target is 90 +/-
Note: Ideally, volume tends to decrease as the triangle shrinks and get close to breakout. So I added a volume indicator below the chart to highlight this idea.
Advice: It is recommended not to rush and place orders before getting clear confirmation of a successful breakout. Keep in mind that breakouts can sometimes be fake.
Ramzi Abou Abdallah, CFTe, CMT
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