BITCOIN Update: Why is Volume Declining?
IF the below ascending right triangle bullish pattern is correct, then volume is supposed to dwindle to a trickle. As the apex gets closer, volume drops to a drip. Then it explodes and in this case, explodes up. (The apex is the point where the ascending right triangle lines intersect). Now look to the left, a fractal ascending right triangle of a smaller scale. Look at the volume decline and then the explosion. Min target was met and exceeded on that pattern.
Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
Some great online resources that I can recommend without reservation.
http://thepatternsite.com/at.html
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:ascending_triangle_continuation
http://www.investopedia.com/university/charts/charts5.asp
But I would caution against calling a pattern until there are at least 4 alternating price contacts with the pattern boundaries - 2 for each line - and then also always remember that what looks like one thing often "morphs" into something else. With 4000 being such an important figure, it could be a straightforward A-B-C developing.
Unless we dip under $3800, which is a massive pivot zone, by the end of this week, we should be good to go for another liftoff.
And we drop below ? What then lol ?
If we dip under $3800, I wouldn't be surprised to see a sell-off down to $3700, maybe even $3650. The $3800 is a massive psychological area!!
Hi Haejin, can you do ETH and pay. Is there a double top for ETH? Thank you.
Ascending triangles has statistically higher chance of ending dropping :\ Especially in bearish trend..
Very interesting. Can you relate per what source? Ascending right triangle occurs in a down trend. My source is
I cannot relate to any book :\ Good You have one for source.
However I can link to examples where the ascending triangles are trend followers as here:
https://www.tradingview.com/chart/AUDNZD/lo401hya-ASCENDING-TRIANGLE-TREND-CONTINUATION/
In bullish trend, they follow trend breaking in gains. In bearish trend they ends directing down targeting 100% height of whole triangle.
Thanks for sharing. I guess it two different schools of thought. I learned using like below examples. They're ancinent charts :-) as I used the 1997 edition.
Could you be talking about an ascending wedge?
Yes, ascending wedges has even higher chance of breaking down. No matter what trend it is
books say ascending wedges bearish
but ascending triangles bullish
@mys, the information is interesting, I did not know about this particularity of ascending triangles in a bear trend.
i appreciate educative posts like this
Very convincing chart!!