BTCUSD Ascending triangle 15 minute chart
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This type of triangle chart pattern occurs when there is a resistance level and a slope of higher lows.
What happens during this time is that there is a certain level that the buyers cannot seem to exceed. However, they are gradually starting to push the price up as evident by the higher lows.
In the chart above, you can see that the buyers are starting to gain strength because they are making higher lows.
Many charting books will tell you that in most cases, the buyers will win this battle and the price will break out past the resistance.
They keep putting pressure on that resistance level and as a result, a breakout is bound to happen.
Now the question is, “Which direction will it go? Will the buyers be able to break that level or will the resistance be too strong?”
However, it has been my experience that this is not always the case.
Sometimes the resistance level is too strong, and there is simply not enough buying power to push it through.
Most of the time, the price will, in fact, go up. The point we are trying to make is that you should not be obsessed with which direction the price goes, but you should be ready for movement in EITHER direction.
In this case, we would set an entry order above the resistance line and below the slope of the higher lows.
Now.. The ABCDE Eliot wave is not necessary, It's just what I like to use. Price could break out at any moment in either direction but I'm betting bullish on this one, so be ready to take the trade on a breakout in either direction.
This type of triangle chart pattern occurs when there is a resistance level and a slope of higher lows.
What happens during this time is that there is a certain level that the buyers cannot seem to exceed. However, they are gradually starting to push the price up as evident by the higher lows.
In the chart above, you can see that the buyers are starting to gain strength because they are making higher lows.
Many charting books will tell you that in most cases, the buyers will win this battle and the price will break out past the resistance.
They keep putting pressure on that resistance level and as a result, a breakout is bound to happen.
Now the question is, “Which direction will it go? Will the buyers be able to break that level or will the resistance be too strong?”
However, it has been my experience that this is not always the case.
Sometimes the resistance level is too strong, and there is simply not enough buying power to push it through.
Most of the time, the price will, in fact, go up. The point we are trying to make is that you should not be obsessed with which direction the price goes, but you should be ready for movement in EITHER direction.
In this case, we would set an entry order above the resistance line and below the slope of the higher lows.
Now.. The ABCDE Eliot wave is not necessary, It's just what I like to use. Price could break out at any moment in either direction but I'm betting bullish on this one, so be ready to take the trade on a breakout in either direction.
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