Decending Triangle break outLooks like GMT is moving in descending triangle, it is going to give break out soon. This is just for study purpose.
GMTUSDT.P trade ideas
confusing GMTwe can see a nice beautiful bullish flag on chart
which indicates a nice bullish sign but at a same time it is forming a descending triangle
we have to wait and see in which direction the market if it breakout down than we can see a down rally till support red line
if it breakout upwards the price can even hits it all time high
How to Trade an ASCENDING TRIANGLE BREAKOUTSTRUCTURE
--> ASCENDING TRIANGLE is a type of consolidation pattern formed after an Uptrend ( Markup Phase).
--> ASCENDING TRIANGLE is a triangular pattern with a flat horizontal Resistance on the top and a Trendline that connects atleast two Higher Low swings from the bottom to the top of the Triangle.
--> ASCENDING TRIANGLE is considered to be a Bullish Pattern because the Swing Lows are getting shifted Higher signifiying the Sellers loosing the strength .
LOGICAL REASON BEHIND THE PATTERN
--> As the ASCENDING TRIANGLE is having the flat horizontal Resistance on the top , There are stack of STOP-LOSS-ORDERS just above the horizontal Resistance. When some Strong Buyer punches a heavy buying order, The order Triggers all the STOP-LOSS-ORDERS which were placed above the horizontal Resistance turning the sellers as buyers.
--> Seeing the Breakout various New Traders and Algo's place more buying orders and the price tend to move higher.
Example
--> Take the example of the crypto GMTUSDT .
--> Initially the crypto was in the Mark-Up phase.
--> Later this crypto entered into the Consolidation phase by making ASCENDING TRIANGLE as the consolidation pattern.
--> $0.82 was the horizontal resistance established by this stock.
--> The Lows started shifting up from $0.5 to $0.7 to $0.75 showing loss in seller strength .
--> The Price started sustaining above the POC (Point of Control) showing buyers strength.
--> When Price Breached $0.82 all SL orders were Trigerred and the crypto gave the breakout with volume .
--> The price moved higher as new Traders and Algo's placed more buying orders .
Target and Stoploss
--> Target would be the Depth of the Ascending Triangle, Projected above the Resistance Breakout as mentioned in the Example Screenshot.
--> Stoploss would be placed below the Breakout Candle LOW .
