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EOS/ETH symmetrical triangle breakout opportunity

03/16/2019 11:40

It takes two points to determine a line. The top boundary of a price area cannot be drawn until two minor trend tops have been definitely established, which means that prices must have moved up to and then down away from both far enough to leave the two peaks standing out clear and clean on the chart.
 
Triangle appears more often as an intermediate or continuation formation than a reversal formation. In the case of the Triangle, there is no certain rule whereby we can conclude that the triangular formation is going to be continuation or a reversal until the subsequent movement has broken away from the apex of the Triangle. 
 
An important point to remember is that the farther out into the apex of the triangle prices push without bursting its boundaries, the less force or power the pattern seems to have. The best moves follow when prices break out decisively at a point somewhere between half and three quarters of the horizontal distance from the base to the apex. The more the upper and lower boundary of the triangle is tested in a short period of time the better it is. It shows that the market participants are respecting the trend lines that have formed. Before a breakout takes place, it is better to have 3-4 tests rather than 2 tests. It clearly shows that significant energy is building in a sideways consolidation.
 
Price chart of EOS/ETH (EOS/ETHEREUM) possibly formed a 10 month-long symmetrical triangle with the upper boundary acting as resistance at 0.0285 levels. The weekly price chart has been showing a steady uptrend since the last quarter of 2017. If the symmetrical triangle acts as a bullish continuation chart pattern, breakout can resume the uptrend with a possible chart pattern price target of 0.045 levels.
 
 
 

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