TRIANGLE PATTERN BREAKOUT- HOW DOES IT WORK?
NAVIN FLUORINE - A beautiful triangle pattern breakout.
A symmetrical triangle had formed between the support and resistance trendlines. A minimum of 2 peaks and 2 troughs are needed for a triangle formation.
A bullish breakout occurs when the resistance line is broken upwards by a green candle closing above the line. This is also confirmed by good volumes of stock traded.
After the breakout, the script price usually retraces ( a setback before the rally). The previous resistance line for the script will now act as a support line.
The maximum height of the triangle will usually be the first target. Fibonacci extensions to 2.618, and 3.618 can be 2nd and 3rd targets respectively.
All the best! Happy trading...
A symmetrical triangle had formed between the support and resistance trendlines. A minimum of 2 peaks and 2 troughs are needed for a triangle formation.
A bullish breakout occurs when the resistance line is broken upwards by a green candle closing above the line. This is also confirmed by good volumes of stock traded.
After the breakout, the script price usually retraces ( a setback before the rally). The previous resistance line for the script will now act as a support line.
The maximum height of the triangle will usually be the first target. Fibonacci extensions to 2.618, and 3.618 can be 2nd and 3rd targets respectively.
All the best! Happy trading...
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