Draftkings looking to breakout of an Ascending Triangle
Hi Guys,
I enjoy posting ideas as its a great way to express the things ive been learning and to get other peoples perspectives. Great way to spin the cycle of learning through each other.
So first things first. We've been trending up an Ascending Triangle pattern since Nov. 2nd after creating a new High on the Daily Timeframe. Currently we are in a middle of a breakout, testing support on the resistance line.
What to watch here is:
Volume - Volume should increase to maintain the momentum upwards
Todays close must be above the red resistance line of the triangle.
What to watch to see if uptrend continues:
RSI continuing upwards, it printed a higher low so we need to see a higher high
MACD blue and red line mouth opening wider
MACD Green bar increasing
STOCH RSI continuing upwards past the 80 level
Other points:
We are above the 50SMA which gives an uptrend or bullish bias
Also notice the yellow line i drew above the MACD. Before a breakout its nice to see MACD flatlining, this means it was in a period of consolidation where momentum was in a standstill due to perhaps almost equal buying and selling.
Comparing this breakout to previous:
it printed a lower high RSI
MACD was also dying out, turning from Green to white which indicates reduced momentum.
Volume didn't decrease which before breakouts is something to look for. The volume before the green candle that broke through the resistance line had a slight decline. Its nice to see that.
Trading Ascending triangles:
Take a position after confirmation of a candle closed above the horizontal resistance line. Stop loss or limit should be slightly below the resistance line. To determine price targets, you take the measure of the base of triangle in this case is the yellow line I drew and labeled and you put it to the horizontal resistance line. So my first target is the previous high. Ill look to see what the situation is before confirming the higher price target. Which ill be observing volume and momentum.
My second target and the price target approximated by rules of Ascending Triangle is highlighted by the darker green line above. Around $75.
I Wish everyone luck and i hope everything made sense. Please comment if you agree or disagree. Im in the process of learning so comments are welcome :). Thanks.
I enjoy posting ideas as its a great way to express the things ive been learning and to get other peoples perspectives. Great way to spin the cycle of learning through each other.
So first things first. We've been trending up an Ascending Triangle pattern since Nov. 2nd after creating a new High on the Daily Timeframe. Currently we are in a middle of a breakout, testing support on the resistance line.
What to watch here is:
Volume - Volume should increase to maintain the momentum upwards
Todays close must be above the red resistance line of the triangle.
What to watch to see if uptrend continues:
RSI continuing upwards, it printed a higher low so we need to see a higher high
MACD blue and red line mouth opening wider
MACD Green bar increasing
STOCH RSI continuing upwards past the 80 level
Other points:
We are above the 50SMA which gives an uptrend or bullish bias
Also notice the yellow line i drew above the MACD. Before a breakout its nice to see MACD flatlining, this means it was in a period of consolidation where momentum was in a standstill due to perhaps almost equal buying and selling.
Comparing this breakout to previous:
it printed a lower high RSI
MACD was also dying out, turning from Green to white which indicates reduced momentum.
Volume didn't decrease which before breakouts is something to look for. The volume before the green candle that broke through the resistance line had a slight decline. Its nice to see that.
Trading Ascending triangles:
Take a position after confirmation of a candle closed above the horizontal resistance line. Stop loss or limit should be slightly below the resistance line. To determine price targets, you take the measure of the base of triangle in this case is the yellow line I drew and labeled and you put it to the horizontal resistance line. So my first target is the previous high. Ill look to see what the situation is before confirming the higher price target. Which ill be observing volume and momentum.
My second target and the price target approximated by rules of Ascending Triangle is highlighted by the darker green line above. Around $75.
I Wish everyone luck and i hope everything made sense. Please comment if you agree or disagree. Im in the process of learning so comments are welcome :). Thanks.
