I show a chart of a potential busted ascending triangle on the daily scale. The ascending triangle is outlined with Blue trend lines. Price pierces the top trendline at (A) and confirms the chart pattern with an upward breakout. However, price does not rise far before it reverses. If price closes below the bottom of the triangle, which occurs at B, it busts the upward breakout. If price continues to move lower by at least 10%, then the chart pattern becomes a single busted ascending triangle.
For a single bust, look for:
1) Pre-trial - Daily candle closing below breakout (A)
2) Confirmation - Price then closes below the bottom of the ascending triangle (B)
3) Price continues moving in the new direction by at least 10%.
4) Price bleeds towards target range (5600 - 6100) for strong reversal
5) Buy the bounce
Notes - Timeline will likely deviate from lines drawn.
**DISCLAIMER** - Rookie Trader, Not Advice. Published for personal notes/journaling
For a single bust, look for:
1) Pre-trial - Daily candle closing below breakout (A)
2) Confirmation - Price then closes below the bottom of the ascending triangle (B)
3) Price continues moving in the new direction by at least 10%.
4) Price bleeds towards target range (5600 - 6100) for strong reversal
5) Buy the bounce
Notes - Timeline will likely deviate from lines drawn.
**DISCLAIMER** - Rookie Trader, Not Advice. Published for personal notes/journaling