STEPNUSDT 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 .
