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Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
This is one of the biggest chart patterns I have ever considered. Slightly more than 7 years long Rectangle, it is about 1/3 of the entire story of this stock.
Such a huge pattern normally makes very difficult to say at which price level we can label a breakout as "valid". In this case, we got a help since here we have what is called a "launching pattern". A launching pattern is a smaller pattern that occurs inside the main pattern and usually at its last stages or just before the possible breakout as in this case.
In orange, we can see an 8 months Rectangle which developed exactly at the upper boundary of the main one. This latter Rectangle is one we would have always traded in itself, so, I think a good option here could be to set the trade based on the orange one knowing that there is a much higher target we could reach, which is the blue Rectangle's one.
In considering this opportunity, remember that if this scenario unfolds, it will probably be a pretty long trade, and this has to be taken into account when managing our overall trading plan risk.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
════════════════════════════════
Since 2014, my markets approach is to spot trading
opportunities based solely on the development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
═════════════════════════════════
Hello Traders ✌
This is one of the biggest chart patterns I have ever considered. Slightly more than 7 years long Rectangle, it is about 1/3 of the entire story of this stock.
Such a huge pattern normally makes very difficult to say at which price level we can label a breakout as "valid". In this case, we got a help since here we have what is called a "launching pattern". A launching pattern is a smaller pattern that occurs inside the main pattern and usually at its last stages or just before the possible breakout as in this case.
In orange, we can see an 8 months Rectangle which developed exactly at the upper boundary of the main one. This latter Rectangle is one we would have always traded in itself, so, I think a good option here could be to set the trade based on the orange one knowing that there is a much higher target we could reach, which is the blue Rectangle's one.
In considering this opportunity, remember that if this scenario unfolds, it will probably be a pretty long trade, and this has to be taken into account when managing our overall trading plan risk.
- Pattern Class: 🌕🌕🌕🌕🌕
- Target area: 2285 then 2700
- Breakout area above: 2100
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
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